In the spirit of Thanksgiving, I’d like to give you something more long-lasting than leftovers…

A list of five of my most important investing tips…

All of which can help you become a self-determined investor. That means taking control of your own investment path – being neither seduced by Wall Street’s hype, nor paralyzed by Main Street’s despair.

A self-determined investor is one who honestly evaluates both risk and reward, and then sets a long-term course toward wealth creation.

Admittedly, artificial intelligence complicates this journey because it introduces new and frightening risks.

But a complicated journey is not an impossible one. If we keep our eyes on the prize, we can try to hitch our financial future to the engines of progress, rather than being run over by them.

So, in today’s Smart Money, I’ll share the five tactics that every self-determined investor needs to embrace and apply.

Then, I’ll show you how to use those tips to find the best stocks within AI boom.

The Self-Determined Investor’s Credo

1. Own Businesses, Not “Tickers”

The Wall Street machine reduces every company to a flickering ticker, a number in green or red. But successful investors look past the flashing lights and ask a simple question: “What is this business, really?”

• Does it sell something the world truly needs, not just something it happens to hype?
• Can it expand profit margins during good times and defend them during bad times, or is it a sandwich awaiting the tide?
• Will it still be relevant in five years – or better yet, in 20?

2. Respect Both Promise and Peril

The promising aspect of AI will create new industries, unlock efficiencies, and drive innovation at a scale reminiscent of electrification or the internet. But AI’s perilous power will hollow out certain jobs, commoditize certain skills, and create volatility in markets unprepared for the disruption.

The prudent investor must acknowledge both sides of AI’s split personality, and then craft their investment strategy accordingly. The intelligent course is neither blind enthusiasm, nor blanket rejection. It is a balance.

3. Think in Years, Not Days

Wall Street obsesses about quarter-over-quarter results, while hedge fund algorithms trade in milliseconds. But the self-determined investor looks past the noise and insists on a longer timeframe.

Wealth is not built in days or weeks. It is built in years, even decades. Investors who extend their time-horizon gain an advantage over the herd.

4. Diversify Without Diluting

Strategic, personalized diversification is also the domain of the self-determined investor. But diversification means more than scattering chips across the board. It means building a portfolio with intention: strong businesses across sectors and resilient assets alongside growth.

In an AI-driven age, diversification might mean balancing high-growth innovators with stalwarts in energy, infrastructure, or healthcare.

5. Refuse the Seduction of Fads

Every age of innovation spawns hype that fuels a boom… and then the inevitable bust.

The Gilded Age featured a “railroad mania” that produced dozens of major bankruptcies. The dot-com boom vaulted profitless websites to multibillion-dollar valuations, only to see them crash to Earth during the bust.

Undoubtedly, the AI Boom will create its own version of infamous failures like Pets.com and Global Crossing.

You need to be informed about which types of companies will thrive.

So, I propose the following blueprint for how to view every prospective investment through the “lens of AI”…

How to Apply These Tips in the AI Age

Self-determined investors can, and should, hunt for opportunity in each of these four AI categories…

First are the AI “Builders,” companies that are creating the software and hardware architectures that enable AI technologies to operate and scale.

Then, AI “Enablers,” companies that support AI’s explosive growth from behind the scenes. They supply the physical materials, energy, real estate, and/or infrastructure required to build and operate AI systems.

Next come AI “Appliers,” companies that are quietly adopting AI technologies to boost efficiency, productivity, and profitability. They may not scream “technology,” but they could profit enormously as they deploy AI technologies throughout their operations.

Finally,there are AI “Survivors,” companies that produce goods and services that AI cannot replicate or replace, operating in major industries like agriculture, energy, mining, hospitality and travel, and more.

By using these categories as a guide, you’ll find that the range of compelling investment opportunities extends far beyond the technology sector – and leads to a more balanced and resilient portfolio.

That is why my Fry’s Investment Report portfolio holds stocks from each of these categories. They all have strong fundamentals, attractive prices, and solid growth potential. And I want you to have access to them.

As a Fry’s Investment Report member, you will receive access to my latest recommendations, which include a range of diverse and under-the-radar finds. You will also receive my latest research, updates, and alerts, where I keep you informed of any major market moves and timely opportunities.

To be a self-determined investor is a challenging task… but it need not be a daunting one.

Click here to join me at Fry’s Investment Report today.

Regards,

Eric Fry

The post 5 Tips Every Investor Must Act on Before the AI Shakeout appeared first on InvestorPlace.

In the essay below, Brian describes one of the key secrets to his success. It doesn’t feature complicated math or any inside information. Instead, it’s a common-sense strategy that anyone can use to his or her advantage.

Brian is working on a new project to share his investment thinking, which we will debut soon. For now, enjoy this essay on how anyone can grow their wealth.

I hope you enjoyed Thanksgiving, and I know you’ll enjoy the essay.

Regards,

Luis Hernandez

Editor in Chief, InvestorPlace

Have you ever known someone who got rich even though they didn’t seem very smart, didn’t work hard, or both?

Almost everyone I know has someone they’d place in this category.

The mortgage broker during the 2002 to 2007 real estate boom, the guy involved with gold mining during the historic gold bull market from 2002 to 2011, the website designer during the 1990s Internet boom, all made millions despite not working or thinking very hard.

There’s also the easy money made during the 2017 Bitcoin boom, the 2016 marijuana stock boom, the post-2008 Silicon Valley boom, the 1980s boom in Wall Street profit, and the list goes on and on.

There’s a powerful secret – a set of knowledge – behind most of the “easy” or “accidental” fortunes you see in the world. This knowledge is one of the key differences between the rich and the poor.

When you put this secret to work, it’s easy to make a fortune without trying or thinking very hard. Below, I’ll tell you how this secret works and how you can start using its enormous power immediately.

In the business and investment world, the boom times I described above (favorable conditions where practically anyone can make a ton of money) are often called “tailwinds.”

If you’ve ever come across someone who got rich without trying or thinking very hard, chances are they got into an industry with a strong tailwind blowing at its back. A tailwind of robust industry growth that lasted for years.

Achieving success in these situations can be like hopping on a boat that is headed down river. You can practically float your way to success.

Take the mid-to-late 1990s Internet and wireless communications boom. It was an incredible time for tech entrepreneurs, investors, and employees. Gale-force tailwinds of wealth creation were blowing.

The benchmark technology stock index, the Nasdaq, gained 40% in 1995, then 22.7% in 1996, 21.6% in 1997, 39.8% in 1998, and then an incredible 85.6% in 1999.

During these boom years, top technology firms like Microsoft, Cisco, and Qualcomm doubled and tripled in value in just months. Annual stock gains of 1,000% were commonplace in the technology sector. Company founders made billions of dollars. “Regular” employees also made millions. Many were simply floating along giant rivers of wealth creation.

A strong business tailwind may come in various shapes and sizes. Perhaps in the form of a huge rally in the price of a commodity like corn (makes farmers rich), or crude oil (makes oil drillers rich).

A strong business tailwind can be the result of a new technology reshaping the world, like what the Internet and wireless communications have been doing since the 1990s. New government laws may cause strong tailwinds to blow, such as the legalization of marijuana.

Most books on wealth don’t emphasize it, but I believe knowing how to spot and harness tailwinds is one of the great secrets of getting what you want in life.

Whether you want money, respect, freedom, or good press, few forces in this world can help you more than a strong tailwind.

Want to retire rich at 40? Get a tailwind blowing in your favor.

Want to build a multi-billion dollar business? Get a tailwind blowing in your favor.

Want to grow your savings through smart investment? Get a tailwind flowing in your favor.

Want to make a large annual income without working or thinking very hard? Get a tailwind blowing in your favor.

Too often in life, smart, hard-working people struggle to get what they want. It’s often because they’re not working with tailwinds at their backs, or worse, headwinds blowing in their faces.

For example, you could have been one of America’s best clothing manufacturers back in the mid-1990s, but vast amounts of cheap clothing coming from China was a powerful headwind working against you.

Consider brick-and-mortar retailers in the Internet age. Many retailers who do many things right are currently getting killed by the gale-force headwind that is Amazon.

Consider how small mom and pop retailers, even the best ones, have struggled to compete against Wal-Mart’s ultra-low-cost headwinds for the past 30 years.

If you’re contemplating taking a new job, starting a new business, or making a substantial investment in a business (public or private), it makes sense to study the tailwinds and headwinds that are affecting, or could affect, the business in the future.

Think of it this way: You don’t want to spend five years of your life becoming a top-shelf buggy maker right before Henry Ford introduces the Model T and you don’t want to own the neighborhood’s best movie rental store right before Netflix rolls out its home streaming service.

People can and do make lots of money in declining industries, but making big money is a hell of a lot easier and your chances of doing so are a hell of a lot higher if you focus on industries with powerful, long-term tailwinds at their backs.

When you do this, you can get rich without trying or thinking very hard.

As I write in late 2025, some businesses that I believe will enjoy strong tailwinds for many years are:

Baby Boomer health care

Autonomous vehicles

Artificial Intelligence

Robotics

Energy storage

AI-augmented drug development

There are plenty of industries that should enjoy strong tailwinds for years, but this is a good place to start. Becoming an expert in any one or several of these fields will get strong tailwinds blowing at your back. You’ll stand a good chance of getting rich without trying or thinking very hard.

And if you’re willing to think and try hard? Well, it’s scary what you could accomplish. Good luck!

Regards,

Brian

P.S. Luis here. If you want to invest with the tailwinds, you need to see the new presentation by Luke Lango.

He is tracking the stocks that are on the receiving end of the ultimate tailwind … a massive amount of money from the U.S. government.

Luke has spent the past several months building a list – not of companies that already received government backing — but to tell you about the companies most likely to be next.

The Pentagon has already published its roadmap. The White House has already outlined its priorities. The Office of Strategic Capital has already identified chokepoints.

The signals are there.

You just need to know how to interpret them.

Luke explains it all in this new presentation. Click here to see it and get in before the big money!

The post How to Get Rich Without Trying or Thinking Very Hard appeared first on InvestorPlace.

Today, my colleague Luke Lango makes a compelling case that we’re living through one of those moments right now.

Luke says that the driving force behind the next wave of innovation isn’t just coming out of Silicon Valley – it’s coming out of Washington, D.C. The U.S. government is no longer just funding technology from the sidelines. It’s actively taking stakes, directing capital and picking the companies it believes will lead America’s AI future.

This is a fundamental change in how winners are chosen – and for forward-looking investors, understanding that change is critical.

Luke has been tracking these signals closely, and he just released a new presentation on the company he believes could be next in line for federal support. If you want to stay ahead of where capital is moving, click here to watch it now.

Now, here’s Luke with the full story…

There are moments in market history when everything quietly changes – when the old rules stop working and a new force takes over.

Most investors don’t see it happening in real time.

They only spot it years later, staring at a long-term chart and saying:

Oh… that was the moment everything shifted.

I’m here to tell you — not in hindsight, but right now — that one of those moments just happened.

And almost nobody is talking about it.

The mainstream media is all about the noise: Nvidia Corp.’s (NVDA) earnings reports, Michael Burry’s short positions, circular financing deals, and whether an AI bubble is popping or not.

For a moment, I want you to forget all of that.

Because what I’m about to show you is much bigger…

Not long ago, if you wanted to spot the next transformative tech stock, you’d follow the venture capital money in Silicon Valley or the innovation coming out of places like Caltech (my alma mater).

Today, I’ll argue that you should follow the money flowing out of Washington, D.C.

The U.S. government has effectively launched a modern Manhattan Project for AI – a massive, multitrillion-dollar effort to secure America’s dominance in artificial intelligence and other critical technologies.

This initiative spans investments in advanced microchips, quantum computing, critical minerals, clean energy, and more. The White House is actively picking and funding the companies it deems crucial to winning the 21st-century tech race.

And if you don’t understand what that means for your portfolio, you’re going to miss the most explosive wealth-creation window since the early days of the internet.

So, let’s walk through why the government is suddenly acting like Silicon Valley’s new mega VC fund… and why early investors in these White House-blessed companies are seeing gains most hedge funds can only dream of.

I explain exactly how to profit — including my #1 stock pick I believe the government will target next – in a brand-new briefing I just finished recording.

But let’s start at the beginning.

Why D.C. Now Sits at the Center of the AI

We’ve seen the proof in recent months.

You’ve probably heard about all of the administration’s pro-AI initiatives, like Project Stargate.

But what you haven’t heard is how they are being used today.

We aren’t talking just subsidy bills. Or stimulus packages. Or even industrial policy plans.

This is the federal government taking direct equity stakes in the companies it believes will determine America’s technological dominance.

And when Washington picks a winner?

The stock reacts like a powder keg.

For example, the government acquired stakes of 15% in MP Materials Corp. (MP) and 9.9% in Intel Corp. (INTC) earlier this year, among others.

It’s a radical departure from business as usual.

But whether one likes it or not, this bold federal intervention is now a reality. And as investors, we need to understand the implications.

What are those implications?

Huge stock moves – to the upside – in the companies that get tapped by Uncle Sam. It turns out that betting alongside Washington can be extremely profitable.

So far, “Uncle Sam’s portfolio” of chosen companies is trouncing the broader market. Consider that:

• Intel’s shares are up about 77% this year,
• MP has rocketed 276%,
• Lithium Americas Corp. (LAC) is up 50%,
• and Trilogy Metals (TMQ) is up 204%.

All far outperforming the S&P 500’s ~13% gain.

These stocks surged as news hit that the government was backing them with major investments or contracts.

In effect, Washington has become the world’s most powerful venture capitalist, and it’s fast-tracking a new generation of tech winners.

And if you understand it, you can profit from it… just like we did.

Why AI Forced the Government to Step In

To illustrate this pattern in action, let me share an example from our portfolio – one that we got right by being a step ahead of Washington’s move.

A while back, I recommended my paid members buy shares of MP Materials at around $30. That was based on a thesis that rare earth elements (used in everything from fighter jets to electric vehicles) were a strategic priority for the U.S.

We were right.

In July, MP Materials announced that the Pentagon would purchase $400 million of its stock, taking a 15% ownership stake through structured agreements. In essence, MP was anointed as a national champion for rare-earth supply.

The stock’s reaction? It surged, ultimately climbing as high as $90 at one point – a triple from our entry price.

We managed to be there before the White House money arrived, but truth be told, we had a hunch that Washington was about to step in.

How did we know MP was likely to get federal support?

We spotted a clear pattern in how the White House and Pentagon were picking national champions and refined that into a simple three-part screen for predicting future winners:

If a company checks these three boxes, it’s a strong candidate for federal support… and often just one announcement away from a major stock move.

Indeed, MP checked every box:

1. Right Industry: Rare earths are officially classified as vital to U.S. national security, and China controls the supply chain. Washington had already signaled it wanted a domestic producer. MP runs America’s only major rare-earth mine – an obvious match.

2. Right Company: In rare earths, MP is the strongest U.S. operator, with its Mountain Pass mine in California, proven output, and big expansion goals. If the U.S. wanted a rare-earth champion, MP was it.

3. Right People/Relationships: MP CEO James Litinsky’s brother Andrew Dean Litinsky (Andy Dean) was a candidate on the 2004 season of The Apprentice… where he got “fired” by Donald Trump. Andy Dean later landed a role within the Trump Organization and helped get Truth Social started. While this doesn’t prove causation, it underscores how visibility, networks, and strategic alignment can accelerate federal attention.

Using this blueprint, we’re now scanning publicly held AI, semiconductor, advanced manufacturing, energy, and critical material companies. The rules of capitalism are changing… and Washington is now a copilot steering capital into specific sectors.

And that brings us to the most important part…

Most Investors Still Don’t See What’s Coming

You’d think Wall Street would be all over this. But incredibly, most analysts still treat these moves as “one-offs.”

They look at MP Materials and think: “Huh, cool. The Pentagon invested in a miner.”

They look at Intel and say: “Interesting, a government-backed chip expansion.”

They think these are isolated events.

They’re not.

They’re Act 1.

The Office of Strategic Capital has already published its roadmap – listing every chokepoint in America’s AI supply chain.

The White House has already declared rare earths, semiconductors, small nuclear reactors, robotics, advanced software, and drone technologies as mission-critical

And the Pentagon, the Department of Energy, and others have begun allocating capital to secure each of these links.

This means there are dozens of companies that haven’t yet received federal backing… but almost certainly will.

And investors who buy those companies before Washington strikes will capture the biggest gains of the entire AI Boom.

I’m talking about potential 500%… 1,000%… even 2,000% returns.

This is Act 2.

And over the past six months, I’ve worked hard to build what I call: The U.S. Government AI Shortlist.

This is the list of companies I believe are next in line to receive federal investment, partnerships, or guaranteed contracts.

And one company stands out on that list above all others.

It sits at the very center of the AI supply chain. It’s U.S.-based. It’s critical to national security. Government agencies have already signaled strong interest.

And I don’t see anyone talking about this company right now.

It may be the most under-the-radar investment in the market today.

That’s why I put together a new presentation on this very topic.

Inside my new urgent briefing, I reveal:

• The company’s name…
• Its ticker symbol…
• Why I believe it could soar 10X or more…
• And the exact signals I’m watching for a government-confirmed deal…

You don’t need to buy anything to watch this briefing.

Just click the link here and get this info for free.

I believe we witnessing the moment Wall Street lost sight of the AI Boom…

Not because of Nvidia’s earnings. Or Michael Burry’s warnings. Or any of the nonsense that the mainstream media just keeps spouting.

But rather, because of Washington.

And the investors who recognize that shift now will be the ones who get rich from it.

Click here to watch my latest presentation now.

Sincerely,

Luke Lango

Editor, Innovation Investor

The post The Moment the Government Became America’s Top Tech Investor appeared first on InvestorPlace.

Instead, they come in through the back door… via the hidden suppliers, strategic resources, or overlooked technologies that suddenly become indispensable.

During the mobile boom of the late 2000s, for example, Apple (AAPL) and Samsung were the stocks bullish investors piled into. They were the “front-door” trades – the consumer-facing giants dominating the narrative and delivering massive returns.

But the truth is, some of the biggest, fastest, most asymmetric gains didn’t come from the ‘main entrance’ at all. 

It was the critical component manufacturers – essential to the entire mobile ecosystem – that gifted early investors rapid returns. 

Lithium Americas Corp. (LAC), a key supplier of lithium – the metal that powers every smartphone battery on the planet – surged more than 930% between January 2009 and January 2010. 

OmniVision – maker of the image sensors used in Apple’s early iPhones – rocketed roughly 460% in just two years, rising from about $5 in early 2009 to nearly $30 by the end of 2010 as investors recognized its pivotal role in mobile photography. By comparison, Apple delivered about 278% gains in the same timeframe – enviable returns by any standard… yet substantially less than what OmniVision and Lithium Americas produced.

These were classic backdoor detonations, when stocks suddenly jumped a few hundred percent once investors caught on to how important a company really is. And right now, we’re seeing that same dynamic unfold again… only on a much bigger scale. 

In today’s AI boom, these re-ratings are even more aggressive – because the catalyst isn’t just demand; it’s the U.S. government itself.

The Government Is the Ultimate AI-Supply-Chain Kingmaker

With AI becoming increasingly essential to national security – powering everything from battlefield autonomy, missile-defense targeting, and satellite intelligence analysis to cyber defense and secure semiconductor production – the federal government is stepping in as the ultimate kingmaker. 

Washington is taking equity stakes, securing critical supply chains, and funneling billions into the companies it deems mission-critical for America’s technological advantage. 

For months, I’ve been using every resource available – from the federal AI Action Plan and the Office of Strategic Capital roadmap, to insights from my network and the newly announced ‘Genesis Mission‘ – to identify the companies that are next in line for a government-driven meltup.

Today, I want to show you how to use this insight to get ahead of the next 500%–1,000% movers… before the rest of the market catches on.

Let’s get into it.

Why Most Investors Miss the Real AI Stock Winners

The biggest mistake investors are making in today’s AI boom? They’re looking for profits in the obvious places: Nvidia (NVDA), Microsoft (MSFT), Meta (META), Alphabet (GOOGL).

Yes, those companies are winners. But they are also already some of the biggest businesses in the world, with astounding market caps and maxed-out multiples. They are assuredly not where the secret fortunes are being made.

Instead, the real money is flowing into the little-known companies hiding within the “AI supply chain”:

• Rare earth magnets
• Semiconductor fabrication
• Nuclear micro-reactors
• Military-grade computing
• Laser sensing systems
• Mineral processing
• Chip packaging
• Energy density technologies

These are not flashy businesses or household names.

Many trade at market caps so small hedge funds can’t even touch them.

But they are absolutely essential to American AI dominance… which is why the White House is busting down the back door – buying stakes, signing contracts, securing supply, and hand-selecting the companies America cannot afford to lose.

And every time it happens, the stocks erupt like a volcano.

Real-World Proof: Government-Driven Stock Explosions

Let me show you how predictable this pattern has been.

• Intel (INTC): the government buys a stake on August 22, 2025 → stock up ~77% by late October.
• MP Materials (MP): the Pentagon becomes a major shareholder on July 10, 2025 → stock surges 228% by mid-October.
• Lithium Americas: 5% federal stake on October 1, 2025 → stock jumps 227% in three weeks.
• Trilogy Metals (TMQ): $35 million for 10% equity on October 6, 2025 → stock rockets more than 400% in one week.

We saw similar stories play out for Antimony Corp (UAMY), Oklo (OKLO), Rocket Lab (RKLB) – not via equity stakes but government involvement… and huge moves higher in a matter of weeks.

These companies did not become winners because of hype or speculation but because Washington walked through the backdoor and said, ‘We need you.’

This is state-level intervention. And it carries more weight than any analyst upgrade, earnings beat, buyout rumor, or tech breakthrough.

Why the White House Is Pouring Billions Into AI Supply Chains

AI is not just another “tech trend.”

As we said before, it is the defining national security and economic challenge of the century.

The White House knows this. The Pentagon knows this. Congress knows this… 

And China really knows this. It already controls 90% of rare earth processing and 70% of the world’s battery supply chain. It has near-total dominance of magnet production and a massive share of global chip packaging.

That’s an existential problem for the United States… because without these materials and components, America can’t power AI.

That’s the backdoor opportunity here.

The White House isn’t trying to beat China with GPUs. It’s trying to secure the underlying supply chain that makes GPUs possible.

That’s why the administration:

• Created the Office of Strategic Capital
• Announced a public AI Action Plan
• Ordered the Pentagon to integrate AI across all operations
• Partnered with OpenAI for a reported $100 billion
• Unleashed $280 billion through CHIPS Act allocations
• Signed multi-decade energy and defense contracts
• And started taking equity stakes in publicly traded companies

What all of this really shows is that the government is running a playbook. It’s identifying the chokepoints America can’t afford to lose, naming the companies that fill those gaps, and then flooding them with capital. 

And once you understand that playbook, you can see the early warning signals for the next 200%… 400%… even 1,000% moves – long before they hit the headlines.

But most don’t read federal supply chain documents, study the Pentagon’s investment maps, or track defense procurement structures.

They don’t know how to parse an AI infrastructure blueprint.

Fortunately, I do.

And after months of researching funding patterns and supply-chain priorities, one company kept rising to the top.

A Company Ready for a Government-Backed Melt-Up

The firm I’m most excited about sits at the precise intersection of:

• AI demand
• National security priority
• Domestic production requirements
• White House policy
• Federal energy mandates
• Pentagon sourcing strategy

Its technology is irreplaceable. Its leadership works directly with defense suppliers. And its positioning makes it arguably the most obvious candidate for the next government-backed explosion.

Inside my latest briefing, I reveal the company’s name and ticker symbol, why I believe it could soar 10X–20X, and the exact government signals pointing to an imminent deal.

With Washington pumping billions into the AI supply chain… new federal stakes being announced almost weekly… and investors still seemingly asleep at the wheel…

This is your moment. 

The back door is wide open.

The post The ‘Backdoor’ Route to AI Stock Fortunes appeared first on InvestorPlace.

Do you know how the name “Black Friday” originated?

Can you guess which services industry claims Black Friday as its busiest day of the year?

Where did Cyber Monday sales numbers come in last year?

The market closes early today, and with leftover turkey and shopping being the focus anyway, let’s have some fun and look at some entertaining Black Friday and Cyber Monday factoids.

If you’re tired of stuffing, football, or relatives, here’s your escape.

Happy belated Thanksgiving to you and yours!

Everything you don’t know about Black Friday… but should

The original “Black Friday” dates to September 24, 1869. That’s when Jay Gould and Jim Fisk tried to corner the gold market. Neither individual was exactly a pillar of virtue, but Gould especially was ruthless, having earned the name “The Mephistopheles of Wall Street.”

In short, when President Ulysses Grant learned of their scheme, he released huge gold reserves to offset the price run-up caused by Gould and Fisk. Gold’s price plummeted in a matter of minutes.

The stock market plunged as well, bankrupting or inflicting massive financial damage on some of Wall Street’s most respected firms. Thousands of speculators were ruined financially, and at least one committed suicide.

With that heartwarming tale out of the way, let’s turn to the more modern “Black Friday” origin story.

The common legend is that the Friday after Thanksgiving was actually named “Big Friday.” Black Friday was a tongue-in-cheek term originating from the Philadelphia police department.

Allegedly, the cops began using the name in the mid-1970s, describing the traffic congestion and smog caused by holiday shoppers. While used in Philly for nearly two decades, the term didn’t become popular on a national scale until the 1990s.

Now, History.com, refutes this story. It claims that Philadelphia police used the term “Black Friday” in response to a different source of traffic chaos.

Can you guess what it was?

College football.

Apparently, the annual Army-Navy football game held on the Saturday after Thanksgiving was a massive event. As this version of the story goes, throngs of fans drove into Philadelphia on “Black Friday,” leading to a traffic nightmare.

Regardless of whether we can thank shopping or football for the atrocious traffic, here are a few more random Black Friday/Thanksgiving weekend factoids for you

Black Friday only became the biggest shopping day of the year in 2001. Prior to that, can you guess which day held the title?

It was the Saturday before Christmas, beating Black Friday every year.

Another question – can you remember in which year retail stores changed policy and began opening on Thanksgiving night?

We can thank (or blame) Walmart for that back in 2011. It became the first major retailer to open stores on Thanksgiving evening, leading to a new name – Gray Thursday.

Now, I must warn you, the following two trivia questions push the envelope a bit. Brace yourself…

How many Black Friday shoppers are drunk?

Yes, you read that right.

RetailMeNot reports that the answer is 12%. This suddenly puts all those Black Friday fights into a different light.

For the second questionable piece of trivia, which services industry claims Black Friday as its busiest day of the entire year?

Plumbing.

As crazy as it sounds, CNN reported that plumbers are busiest the day after Thanksgiving because they’re needed to clean up after guests who “overwhelm the system.”

Here are a few more Black Friday factoids for you from across the internet:

• U.S. online Black Friday sales hit $10.8 billion in 2024 — a 10.2% jump from 2023.
• Globally, online Black Friday spending reached roughly $74.4 billion in 2024 (up around 5% year over year).
• Looking ahead, U.S. online sales are projected to reach around $11.7 billion in 2025.
• On Black Friday 2024, approximately 87.3 million Americans shopped online and 81.7 million visited physical stores.
• Globally, mobile devices accounted for about 69% of all Black Friday purchases in 2024.
• Among U.S. Black Friday online shoppers, 71% planned to buy clothing & accessories, 71% electronics; 45% health & beauty; 40% household appliances.
• According to a YouGov survey for 2025, just 39% of Americans say they’re very interested in Black Friday — but among Gen Z/Millennials the participation intent is near 58%.

Turning to online sales, what’s the origin of Cyber Monday?

Cyber Monday dates to 2005.

It was conceived by the National Retail Federation to encourage people to do more online shopping.

Now, have you ever wondered why it’s Cyber Monday and not, say, “Cyber Saturday”?

Back in 2005 when the shopping day was conceived, the internet was far slower than it is today. So, far more people did their online shopping from work rather than home (I’m guessing due to both faster connections at work, as well as a greater willingness to waste employer’s time than personal time).

As a result, in the early days of online shopping, most digital sales came on the Monday after Thanksgiving. Even now, 95% of employees admit they’ll shop while at work on Cyber Monday.

Now, from a shopper’s perspective, what’s the difference between Black Friday and Cyber Monday? Is one better than the other for certain types of deals?

From Business Insider:

A solid rule of thumb is that Black Friday is a better time to buy newer, big-ticket items. It’s also the best day to shop in stores, though you can also shop online.

Cyber Monday is a better day to shop for tech deals and smaller gifts. You’ll also see slightly better discounts online.

So, how big is Cyber Monday?

In 2024, approximately 72.3 million consumers shopped online on Cyber Monday, and U.S. online spending reached $13.3 billion.

Here are some other fun facts about Cyber Monday:

• U.S. online sales on Cyber Monday 2024 hit $13.3 billion, up around 6.45 % YoY.
• The forecast for Cyber Monday 2025 is around $14.2 billion.
• On Cyber Monday 2024, during the 8 p.m.–9 p.m. ET peak hour, consumers spent about $15.8 million per minute.
• In 2024, about 57% of Cyber Monday online sales were made via smartphones.
• For 2025, approximately 46% of Americans say they plan to shop during one of the major sale events (Black Friday or Cyber Monday).

And just for fun, here are a few extra factoids this year:

• Buy Now, Pay Later usage on Black Friday 2024 jumped roughly 20% year-over-year, setting a record for installment-based shopping.
• AI-driven product recommendations influenced more than $40 billion in U.S. holiday e-commerce revenue in 2024.
• Roughly 17% of all Black Friday/Cyber Monday purchases are returned, costing retailers more than $100 billion across the season.
• 57% of shoppers say they start hunting for Black Friday deals before Halloween.
• 63% of Cyber Monday shoppers say they worry their packages won’t arrive on time.
• In 2024, the average U.S. shopper spent roughly $321 on Black Friday alone, up sharply from the prior year.

Forgive us for questioning the health of the U.S. consumer here in the Digest!

Finally, a big “thanks” to you

As we wrap up, let’s borrow a Thanksgiving tradition that’s popular with many families around the nation – taking a moment to be intentional about saying “thanks” for something that we’re grateful.

Speaking for the Digest and InvestorPlace at large, we’re thankful for you.

We appreciate the opportunity to partner with you in helping you achieve your investment goals. It’s a pleasure to do our best to help you become a wealthier, wiser investor.

All the best to you and yours.

Happy Black Friday,

Jeff Remsburg

The post Black Friday Fun Facts appeared first on InvestorPlace.

So, in today’s ÃÛÌÒ´«Ã½ 360, I want to take it easy, so to speak, and talk about how I find the very best stocks in the market. I’ll share how my system has led me to take profits in a stock before it goes down. And most importantly, I want to tell you about a few overrated stocks that you should sell right away.

But first, I want to talk about the recent market action. I’ve been encouraged to see some positive action this past month, with the S&P 500, NASDAQ and the Dow hitting new record highs. This is due to the fact that the uncertainties that were hanging over the market earlier this year have largely been lifted.

We are also entering the seasonally strong time of the year, the holiday season, where the cheery mood spreads through Wall Street. But I don’t want you to sit back and get comfortable just yet.

With earnings season now behind us, I want to remind you of what you will see happen every quarterly announcement season. The stocks that are the crème de la crème – that is, stocks with superior fundamentals – often beat their estimates for sales and earnings. As such, they get rewarded with strong institutional buying pressure.

Meanwhile, the weaker companies – that is, stocks with poor fundamentals – rarely surprise Wall Street. And because of this, they can drop like rocks when they announce results.

Now, I’ve been in the market for more than four decades. And during that time, I’ve learned “what works” on Wall Street and what doesn’t. While I don’t claim to have a crystal ball, I believe my Stock Grader tool (subscription required) is the closest thing to it.

You see, I purposefully designed this tool to help me distinguish between the two – fundamentally superior stocks and fundamentally weak stocks… before the rest of the market catches on.

How Stock Grader Helps Avoid Disaster

My Stock Grader tool has eight fundamental criteria that make up a stock’s fundamental “grade.”

Essentially, what it looks for are strong fundamentals like good margins, strong sales growth, earnings growth and optimism from analysts. That’s the bedrock of the stocks we select in my Growth Investor service.

The other element that Stock Grader helps us find is stocks with persistent institutional buying pressure. This is where my Quantitative Grade comes in.

If a stock has a Quantitative Grade of “A,” that tells me that there are institutional investors (money management firms, banks, etc.) who are VERY interested in this stock. This is what Wall Street likes to call the “smart money.”

These firms have billions at their disposal to invest. So, when they begin buying, they tend to buy a LOT. As this buying pressure increases, so does the price of the stock. And in turn, you’ll see profits!

These things might sound like common sense, but far too many investors neglect them. And I find that’s often the case with growth stocks that are receiving more hype than they really deserve.

Sure, we all want growth. But oftentimes, eye-popping revenues can hide a lot of evils and result in much more hype than is really warranted. This sends people stampeding into exactly the wrong names.

Luckily, we can also use Stock Grader to help us avoid these stocks. And even better, if we do own them, it can help us sell these stocks before it’s too late.

Because the truth of the matter is this…

Even if a company looked great before, sometimes disaster can be lurking under the surface.

That was the situation with Enron in the early 2000s…

How My System Detected the Biggest Financial Fraud of All Time

Before Enron became one of the most infamous stocks ever, it was a great growth play.

Enron was once America’s seventh biggest company but also named “America’s most innovative company” in Fortune magazine (six years in a row).

And at one point, it was a big, flashing, A-rated stock in my system. After I recommended the stock, it gained 36%.

Then, Enron’s rating started to weaken. This was well before Newsweek declared “Lights out for Enron,” in December 2001. The corruption going on at Enron was yet to be discovered – but according to my system, the fundamentals certainly didn’t justify the hype.

So, we took our profits. And it turned out to be one of the best moves of my career! Other investors, sadly, got wiped out. Enron’s employees lost their retirement savings. But we avoided the massacre that ensued a few months later.

Now, Enron is a pretty extreme example. So let me be clear: It does not take a massive financial fraud to wipe millions of dollars in value from the stock market.

When a stock gets into a bubble, even a much smaller prick will do the trick.

With that in mind, let’s look at some growth stocks that my system is flagging as either “D” (Weak) or “F” (Very Weak).

Again, let me stress that I am not suggesting there is anything untoward going on at these companies. But according to Stock Grader, they are simply not worth your money at this time. As such, I suggest that you look elsewhere for great buys right now.

Where You Should Look Next

By combining a stock’s Fundamental Grade with its Quantitative Grade, we can make sure that we avoid holding time bombs in our portfolio. 

Ultimately, spotting the right investment is simple with Stock Grader. You buy when the company achieves a Total Grade of “A” (Very Strong) or “B” (Strong)… and sell when it disappears.

This is how we’ve landed winners like over 4,000% on NVIDIA Corporation (NVDA), which we still have in our Growth Investor Buy List right now.

The fact is that if you are looking for fundamentally superior stocks, you should look no further than my Growth Investor service. Currently, my Growth Investor stocks are characterized by the strongest sales and earnings growth: 25.7% average annual sales growth and a whopping 84.1% average annual earnings growth.

So, these stocks remain “locked and loaded” for a strong yearend rally – and for the ongoing bull market in 2026.

Click here now to learn more about my Growth Investor service, and how my Stock Grader system can steer you to profits.

Sincerely,

Louis Navellier

Editor, ÃÛÌÒ´«Ã½360

P.S. I’ve been talking about the AI megatrend for months now – it’s the driving force behind so much of what’s happening in the markets. And my InvestorPlace colleague Luke Lango just released a new briefing that takes this story a step further. He’s uncovered a group of small U.S. companies he believes are positioned to benefit as Washington ramps up its investment in AI infrastructure. Some early names in this trend have already seen big moves, and Luke says more could be coming. To see the first company on his list – which he reveals for free – be sure to watch his presentation now.

The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

Clorox Company (CLX) and NVIDIA Corporation (NVDA)

The post How to Spot a Bad Stock Before it Drops appeared first on InvestorPlace.

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It used to be that a bachelor’s degree was a reliable path to a higher salary and more economic opportunity.

But today, as Gad Levanon, chief economist at the Burning Glass Institute, just told CNBC, forget the higher salary…

For the first time in modern history, a bachelor’s degree is no longer a reliable path to employment.

The college-to-career pipeline that defined the American Dream for decades is breaking down… and AI is the wrecking ball.

But is this just a preview of a bigger shift that’s going to stretch far beyond entry-level jobs?

As we covered in the Digest last week, the latest national unemployment rate climbed to 4.4% in September. That’s not awful, but it’s also not great – it’s the highest level in four years and heading in the wrong direction.

But for younger workers between the ages of 16 to 24, the data is more concerning. Their unemployment rate just clocked in at 10.4%.

For context, it’s been much higher. The rate approached 20% during the Global Financial Crisis. But the velocity of deterioration matters.

As recently as Spring 2023, this rate was just 6.6%. So, topping 10% is troubling and calls into question the collegiate value proposition.

Here’s CNBC:

An analysis by Goldman Sachs found that the “safety premium” of a college degree is shrinking.

Although college graduates are still less likely to be unemployed than their non-degree counterparts, the advantage is smaller than it’s been in decades.

To be clear, my question isn’t about unemployment – it’s about whether the job prospects and salary after graduation warrant the cost – and in most cases, debt.

Here’s The New York Post:

Less than half of student loan borrowers have been making their payments on $1.6 trillion of debt as they struggle to afford housing and groceries – and some are letting the bills pile up as a form of protest.

Only 38% of the 42.7 million borrowers nationwide are in repayment and current following five years of leniency measures from the US government following the COVID-19 pandemic, the Department of Education said in April.

AI.

Historically, technology has primarily affected blue-collar jobs. Think mechanical power trumping human musculature, or machine consistency outdoing human handiwork.

The most dramatic example was in agriculture, where automation reduced the U.S. workforce share from 41% in 1900 to just 2% by 2000.

But with AI, we’re seeing a radical shift – it’s white-collar jobs that are increasingly on the chopping block.

From Pew Research:

Jobs with a high level of exposure to AI tend to be in higher-paying fields where a college education and analytical skills can be a plus…

Workers with a bachelor’s degree or more (27%) are more than twice as likely as those with a high school diploma only (12%) to see the most exposure.

We’re not yet at the tipping point of AI’s economic creative destruction, but it’s coming.

For now, job losses are being offset by new jobs in areas like healthcare, construction, hospitality, and transportation, which aren’t as vulnerable to AI.

Plus, many laid-off workers are finding new roles, often in companies adopting AI but needing people to manage, prompt, or train the systems. In other words, for the time being, AI is being used to augment rather than replace workers.

But let’s be clear – this is a temporary transition stage.

In prior Digests, I’ve made an analogy to Ernest Hemingway’s novel “The Sun Also Rises.” When asked how he went bankrupt, a character replies, “Two ways. Gradually, then suddenly.”

How deep into “gradually” are we today?

It was through Louis and his team that I was introduced to the term “double exponential.”

Originally used (in the context of technology) by futurist Ray Kurzweil, author of “The Singularity is Near,” the term describes the idea that technological progress doesn’t just follow a single exponential trend but often accelerates at an even faster rate.

“Double exponential” growth means that not only is the growth rate increasing, but the rate at which it increases is accelerating.

Here’s Louis tying this idea to our economy and labor market:

Today, we find ourselves at a moment I call the “Economic Singularity.”

This is the moment when AI crosses a threshold and makes most human labor economically irrelevant.

We’re past the point of no return. AI is improving itself now. It’s creating its own agents. And writing its own code.

What comes next?

In short, the biggest transformation of wealth and labor in human history…

Folks, I know this sounds dramatic, but I’m telling you straight.

It’s the way innovation works. It happens slowly at first… and then, all of a sudden, everything is different.

Why?

Here’s Amazon human resources chief Beth Galetti, explaining – and echoing Louis’ broad points:

This generation of AI is the most transformative technology we’ve seen since the Internet, and it’s enabling companies to innovate much faster than ever before.

We’re convinced that we need to be organized more leanly, with fewer layers and more ownership, to move as quickly as possible for our customers and business.

Stepping back, the only difference between a 22-year-old college grad who can’t find work and the 52-year-old working professional is that AI hasn’t scaled to take that 52-year-old worker’s job… yet.

But our current trajectory suggests that the switch is on the way…

Now, Louis makes an important point: You don’t have to like this change – but you must choose how you’ll respond to it. And part of that involves aligning your wealth with the very technology that might be disrupting your employment.

To this end, Louis recently released a new batch of research.

It includes four special reports covering: 1) the top stocks for this age of the Singularity, 2) which physical AI (think “humanoids/robots”) to buy today, 3) a “Complete Portfolio Protection” Plan, and 4) how to find pre-IPO, potential Unicorn AI investments before they’ve gone public.

You can learn more about accessing all this by clicking here.

On one hand, AI is eliminating jobs “gradually, then suddenly” – starting with the youngest/least experienced workers but accelerating up the age/experience ladder.

But the gains in select stocks benefiting from this shift to AI are anything but “gradual.” Many are already exploding – and those who get positioned early stand to benefit most.

Which brings us to an unlikely AI investor who has been crushing the market in recent months…

That’s not hyperbole – it’s a headline from CNN last week.

In recent months, the federal government has increasingly been acting like a strategic investor, not merely a regulator or subsidy dispenser. It has taken direct equity stakes in Intel (INTC), MP Materials (MP), Lithium Americas (LAC), and Trilogy Metals (TMQ).

Behind each of these moves is a common denominator – AI.

The U.S. government sees advanced semiconductors, rare-earths, battery materials, and AI-enabling infrastructure as the front line of global competition in the AI race. Securing domestic production – and reducing reliance on China – has become a national-security priority.

If you’d invested alongside the government, you’d be up big today.

Here’s CNN:

So far, the government’s portfolio is outperforming the S&P 500.

Intel shares are up 77% this year. MP Materials shares have soared 276%. Lithium Americas and Trilogy Metals shares are up 50% and 204%, respectively.

The benchmark S&P 500 is up 14.5% this year.

Given these results, investors naturally want to get ahead of where Washington may point its firehose of capital next.

So, which companies are the most likely targets?

That’s where our technology expert Luke Lango comes in.

If you’re new to the Digest, Luke is the editor of Early Stage Investor, our premium service focused on pre-IPO and early-stage AI opportunities. And in recent weeks, he’s been researching what he calls America’s “Manhattan Project for AI“ – a multi-trillion-dollar effort to secure U.S. dominance in artificial intelligence.

As part of this initiative, Washington appears to be lining up a new wave of small, overlooked U.S. AI companies that could receive strategic support.

But the key to benefiting from such moves is to be there early, not following the masses.

Here’s Luke with more:

Most investors will hear about these deals after they happen.

That’s too late.

By the time the average person sees the headline… the juicy part of the move has already happened.

That’s why I’ve spent the past several months building a list — not of companies that already received government backing — but to tell you about the companies most likely to be next.

Luke has identified seven under-the-radar AI companies he believes are next in line – firms with the potential to soar 5X – even 10X – as federal investment accelerates. And in his new research briefing, he reveals the name of the first one for free.

We opened by spotlighting a troubling trend: rising youth unemployment and the weakening college-to-career pipeline.

But as I’ve tried to show in today’s Digest, this isn’t just a generational hiccup – it’s part of a broader economic realignment driven by AI.

Whether with Louis and the Singularity or Luke and the Manhattan Project for AI, let’s get prepared.

Have a good evening,

Jeff Remsburg

The post 10.4% Youth Unemployment – Is Your Job Next? appeared first on InvestorPlace.

Factories that once made cars were suddenly producing tanks… 

Corporations transformed overnight. And companies that aligned with the government’s new wartime agenda didn’t just survive… they exploded.

That’s the kind of shift we’re seeing in 2025.

Because a new war is underway – not on battlefields, but in silicon, code, and data. 

It’s the race for AI dominance. And once again, Washington has stepped in to pick winners.

This year, the biggest force in the markets isn’t the Fed. It’s not Wall Street.

It’s the U.S. government.

And just like in the 1940s, investors who understand where Washington is pointing its resources can capture extraordinary gains … before the rest of the market catches on.

You see, there’s a new signal flashing across the markets right now. 

Most investors don’t even realize it exists. 

But it’s already triggered triple-digit moves in AI stocks… and it’s only getting stronger.

Today, I’ll show you what this signal is, how it works, and how to use it to find stocks primed to explode.

Then I’ll share how to watch my urgent new briefing, where I reveal the next company this government signal is pointing to. One I believe is about to receive major federal backing and potentially soar 500% to 1,000% or more.

Let’s dive in.

The Most Reliable Signal of 2025: Federal Positioning

If you plotted every major AI-related stock that has surged triple-digits or quadruple-digits in the last year, you’d notice something remarkable:

Most of them erupted after a federal action.

Most of them erupted instantly.

Most of them erupted far more violently than typical catalysts would justify.

That’s not a coincidence. That’s a pattern. And in markets, patterns are gold.

Let’s walk through a few examples.

Case Study #1: Intel – The Federal Stake Signal

Intel (INTC) struggled for years. Everyone knew it.

Then the government stepped in — not with subsidies, not with loans, but with a direct equity stake.

And overnight? The stock surged nearly 70%.

Not over a year.

Not over six months.

Overnight. 

That’s the signal.

Case Study #2: MP Materials – The Pentagon Partnership Signal

MP Materials (MP) was a niche rare-earth miner few investors cared about.

Then the Department of Defense struck a public-private partnership and became the company’s biggest shareholder.

What happened next? The stock tripled.

Again: Not a rumor. Not speculation.

A confirmed federal alignment.

That’s the signal.

Case Study #3: Lithium Americas & Trilogy Metals – The Equity-for-Security Signal

Lithium Americas (LAC): Government takes a 5% stake → stock jumps 227% in 21 days.

Trilogy Metals (TMQ): Government trades $35M for 10% equity → stock rockets 400% in a week.

These aren’t anomalies.

They’re the clearest, most predictable signal I’ve seen in my entire career.

Whenever Washington puts its finger on the scale…

The stock doesn’t go up … it detonates.

Why This Signal Works So Well

When the White House identifies a company as “mission-critical” to national security and AI dominance, several things happen at once:

That’s why this signal works.

It’s not about momentum… or valuation… or guidance… or technicals.

It’s about the federal government deciding what must succeed.

And there is no force in global markets larger than the United States government.

Here’s where it gets even more interesting.

Most investors think these federal investments are random.

They’re not.

The U.S. government has already published, publicly, its priority list for the AI supply chain through the Office of Strategic Capital.

This document breaks down:

• Which industries are essential
• Which chokepoints threaten national security
• Which stages of the AI supply chain are most fragile
• Where America must build faster
• And which technologies the Pentagon considers irreplaceable

That means you can literally read the roadmap of where the next deals are coming from.

Most analysts don’t even know this roadmap exists.

But if you do?

You can spot the government’s next winners before most everyone else.

And I just released a brand-new briefing revealing the #1 stock I believe is next.

The Next Company I Expect to Trigger the Signal

I spent months analyzing federal documents, defense funding pipelines, AI supply-chain chokepoints, CHIPS Act allocations, White House priorities, agency partnerships, contractor disclosures, and boots-on-the-ground intel from my network.

Through all that research, one company stood out far above the rest.

It meets every criterion for federal alignment:

• U.S.-based
• Supplies a critical AI chokepoint
• Already in contact with federal agencies
• Directly mentioned in multiple government planning documents
• Positioned for a federal contract or equity deal
• And trading at a level that could produce enormous returns if selected

This is the clearest “government signal” setup I’ve seen in months.

And I’m giving away the name and ticker of this company for free — inside my new White House AI investment briefing.

You can watch it right here.

This Is the Most Predictable Wealth Signal I’ve Ever Seen

Usually when I uncover a powerful market signal, it lasts a few months… maybe a year.

But this one?

This will shape markets for the next decade.

Because the government isn’t simply participating in the AI Boom.

It is orchestrating it.

When Washington declares a company essential…

When the Pentagon allocates investment capital…

When the White House signs an AI partnership…

When the government takes a direct equity stake…

That is the signal.

That is the moment early investors can make generational wealth.

And one of those moments is about to happen again.

I’ve identified the company. 

I’ve tracked the clues.

I’ve connected the dots. 

Now all you need to do is watch the briefing.

Click here to watch it while it’s still available.

This may be the clearest opportunity you see all year.

The post The One Wealth Signal Almost Nobody Is Watching appeared first on InvestorPlace.

In today’s issue, my colleague Luke Lango is taking you inside one of the most important — and least understood — shifts happening in the markets right now. Governments around the world are no longer standing on the sidelines of the AI boom. They’re stepping directly into the arena: funding critical technologies, taking equity stakes in strategic companies, and accelerating projects that would’ve taken years to materialize on their own.

As you’ll see in this tech investing legend’s analysis below, this new wave of government-backed investment is already reshaping the landscape for AI, energy, semiconductors, and critical materials. Stocks that once lived in obscurity are suddenly doubling, tripling, and in some cases surging 300% to 400% almost overnight.

Luke has been mapping these signals for months — and he just released a brand-new presentation breaking down what he believes will be the next major D.C.-backed winner. I strongly encourage you to watch it.

And read his report below…

Washington, D.C., last week

I wasn’t there, but imagine it played out something like…

The ballroom at the U.S.–Saudi Investment Forum is packed — diplomats, CEOs, billionaires, security everywhere.

Then the room shifts.

Tech billionaire Elon Musk walks in.

Right beside him: Jensen Huang, the CEO of Nvidia Corp. (NVDA), the company powering the AI Revolution.

They take the stage. No hype. No theatrics. Just a quiet announcement that sends a jolt through the crowd.

Saudi Arabia is backing one of the most ambitious AI projects ever attempted — a hyperscale data center built around 600,000 GPUs from Nvidia.

Musk confirms xAI will be the first customer.

A nation-state is building a supercenter for a single private company.

It had to be one of those moments when everyone in the room realizes the future just jumped forward.

Let’s put it in perspective…

This single project will consume 500 megawatts of Nvidia hardware alone. Advanced Micro Devices Inc. (AMD), Qualcomm Inc. (QCOM), and Cisco Systems Inc. (CSCO) will help deliver another gigawatt of AI silicon and infrastructure by 2030.

That’s the scale of national energy grid projects — not tech firms.

And that’s exactly the point.

AI is no longer driven solely by Silicon Valley.

Governments, sovereign wealth funds, and national priorities are shaping it. Power blocs are now directly funding — and effectively choosing — which AI platforms and chipmakers will dominate the next decade.

For investors, that matters.

Companies nobody talked about a year ago are suddenly doubling, tripling, or even quadrupling after a single announcement:

A government stake…

A partnership…

A federal contract…

And the stock erupts.

Last week, Saudi Arabia made its move.

Washington is doing the same.

And as I’ll show you today, the administration isn’t just subsidizing AI growth — it’s picking winners.

And when Washington anoints a winner, stocks don’t just rise… they explode.

So today, we’ll walk through why this shift is so significant — and why I’ve prepared a new briefing on what I believe could be the next D.C.-backed winner.

But first, let’s break down exactly what’s happening here…

Why Washington Is Suddenly Playing Venture Capitalist

America just entered the biggest technological arms race since the dawn of the nuclear era… and the administration is treating victory as a national-security emergency.

First came Executive Order 14179. Then, a 28-page AI Action Plan.

Next, billions in CHIPS Act funding. New trade-tech allocations, federal partnerships with OpenAI, and fresh Pentagon AI directives.

And now: the Office of Strategic Capital — an agency designed to invest directly in critical material and technology firms.

This is not ordinary policy.

As I explain further in my newest free broadcast, this is an AI Manhattan Project.

For the first time in modern history, the U.S. government isn’t just subsidizing technology… it’s taking equity stakes.

For example…

Examples:

• Pentagon: 15% stake in MP Materials Corp. (MP) + $150 million loan to boost rare earth production
• White House: 10% stake in Intel Corp. (INTC), worth $8.9 billion
• Department of Energy: 5% stake in Lithium Americas Corp. (LAC) + project financing for the Nevada project
• Pentagon: $35.6 million for a 10% stake in Trilogy Metals Inc. (TMQ) for critical mining in Alaska

Every one of them surged at least high double-digits after receiving the White House stamp of approval. Most soared by 100% or more.

A few ripped as much as 400% in a week.

My paid members at Innovation Investor were able to harvest gains of 70% in MP Materials after just three weeks…

We’re talking violent re-ratings driven by the most powerful capital allocator on Earth.

And here’s the key.

This is only the beginning.

Why You Must Be Early

Most investors will hear about these deals after they happen.

That’s too late.

By the time the average person sees the headline… the juicy part of the move has already happened.

That’s why I’ve spent the past several months building a list — not of companies that already received government backing — but to tell you about the companies most likely to be next.

The Pentagon has already published its roadmap. The White House has already outlined its priorities. The Office of Strategic Capital has already identified chokepoints.

The signals are there.

You just need to know how to interpret them.

And that’s exactly what I’ve done.

In fact, I just recorded a brand-new urgent briefing that walks investors through:

• The $8.9 trillion AI infrastructure plan reshaping the economy
• Why the White House is taking equity stakes in private-sector tech firms
• How to identify the “next in line” before the news hits
• And the name of the company I believe is about to become the next 500%-plus federal-backed winner

This may be the most important presentation I’ve released in a few years.

Because if history teaches us anything, it’s this:

When Washington opens the money spigot and starts picking winners, early investors don’t just make money… they build fortunes.

And the next one is coming fast.

Washington is no longer just writing checks and hoping innovation follows — it’s actively picking the companies it believes are critical to America’s technological and national-security future.

Just like the Saudis did last week with the new xAI-Nvidia project.

When that kind of money, momentum, and political backing converges on a handful of names, the result can be explosive moves in their stock prices.

My goal is simple: To help you get in front of those moves — not read about them after the fact.

Click here to watch my latest presentation now.

Sincerely,

Luke Lango

Editor, Innovation Investor

The post Forget Silicon Valley — the Next Tech Fortunes Start in D.C. appeared first on InvestorPlace.

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This morning brought a huge shakeup to the tech world, and there could be portfolio-rattling consequences.

We learned that Meta (META) is in talks with Alphabet (GOOGL) to potentially buy billions of dollars’ worth of Alphabet’s TPU chips rather than the industry standard GPU chips produced by firms such as Nvidia (NVDA) (disclaimer: I own GOOGL).

This could be a huge shift for the tech sector – and investor portfolios. As I write on Tuesday, GPU giant Nvidia is down 5%.

Let’s back up and fill in a few details…

Think of AI like a city that’s exploding in size. Nvidia has been selling the construction machinery – the cranes, the bulldozers, the equipment that builds the skyscrapers.

Well, with this morning’s news, Google walked in and said, “Actually, we make our own custom machinery now – and it might even be better for certain kinds of buildings.”

If Google’s right, then the most critical part of AI’s future – the infrastructure – might shift away from Nvidia’s long-standing dominance.

Nvidia’s GPUs (Graphics Processing Units) have been the standard for training and running large AI models. They’re flexible, powerful and have a strong ecosystem behind them.

Google’s TPUs (Tensor Processing Units) are different: They’re custom silicon (often called ASICs) optimized for machine-learning-specific workloads – especially inference, large-language models, etc.

The big news this morning is that Google is moving to commercialize its TPUs more widely, expanding access beyond limited partners like Anthropic.

Here’s Bloomberg:

Meta’s likely use of Google’s TPUs, which are already used by Anthropic, shows third-party providers of large language models are likely to leverage Google as a secondary supplier of accelerator chips for inferencing in the near term.

Meta’s capex of at least $100 billion for 2026 suggests it will spend at least $40-$50 billion on inferencing-chip capacity next year, we calculate.

If Google succeeds, the value of the “platform” or “ecosystem” in AI hardware shifts.

It won’t only be about GPUs from Nvidia anymore; there could be meaningful alternative architecture in play – which can affect margins, growth, and competitive advantage.

No.

Just because a company gets challenged doesn’t mean it’s dead. Nvidia still has massive scale, ecosystem, customers, software support – those don’t evaporate overnight.

Plus, Alphabet’s TPU chips aren’t a sure thing yet.

Here’s Bloomberg:

Much depends on whether the tensor chips can demonstrate the power efficiency and computing muscle necessary to become a viable option in the long run.

Still, we must understand this sudden risk and then reevaluate how much exposure we want and why.

On one hand, Nvidia still has the world’s deepest ecosystem of tools, developers, and software built specifically to work with their hardware. That’s not something Google can replicate in a year or two.

But Google doesn’t need to “win” outright to change the landscape. It only needs to prove that its TPUs are a viable alternative.

All it takes is one major customer – such as Meta – shifting part of its AI workload to Google silicon, and suddenly the ground underneath Nvidia’s throne starts to rumble.

TPUs may be significantly cheaper to operate than GPUs. And if that proves true at scale, the effects go far beyond GOOGL and NVDA trading blows in the stock market.

Nvidia’s GPUs are incredibly powerful, and also extremely flexible – designed to handle a wide range of computing tasks.

But that flexibility comes at a high cost because you’re paying for capabilities that aren’t always necessary for AI workloads.

Google’s TPUs, on the other hand, are highly specialized chips built almost exclusively for one thing: accelerating the matrix math that powers large-scale AI models.

By stripping out everything nonessential, Google can make these chips simpler, more power-efficient, and most importantly, cheaper to run. Lower component costs and reduced energy usage result in lower total compute costs for customers.

If TPUs deliver similar performance per dollar – or better – the economics of AI change overnight.

The biggest technology companies spend billions running AI models. If Google offers a significantly cheaper alternative, these companies have a financial incentive to shift more of their workloads away from Nvidia hardware. And that has ripple effects…

Cloud platforms would need to adjust pricing… AI startups would rethink their cost structures… and investors would have to reassess Nvidia’s future growth assumptions.

To be clear, my point is not that Nvidia is suddenly in trouble. It’s that the market is suddenly facing the possibility that AI compute – the most expensive raw ingredient in this entire revolution – may not be as locked-in or as expensive as it appeared last week.

Consider the implications for all those data centers popping up everywhere…

Consider the implications for all that capex spend that the hyperscalers have already dropped…

Consider how this news could redirect trillions of dollars’ worth of capital flows over the next few years…

Bottom line: Cheaper AI would change everything. And Google just cracked that door open.

While Wall Street is only waking up to the TPU narrative today, some of the sharpest people inside our own research group were mapping this out months ago.

Back in early June, an internal email thread started circulating between Mike Merson, editor of the TradeSmith Digest, Luis Hernandez, InvestorPlace’s Editor in Chief, Senior Analyst Brian Hunt, and our technology expert Luke Lango, editor of Early Stage Investor.

What stood out wasn’t just that they were talking about TPUs… but how they were talking about them.

Luke, in particular, was out in front of the curve. His core insight came down to this evolving split inside AI:

GPUs > TPUs on AI training… but TPUs > GPUs on AI inferencing.

That line captured the quiet turning point that Wall Street hadn’t seen yet. But Luke laid it out even more clearly:

We are going from AI training to inferencing, and that requires a new type of AI chip.

GPU usage should fall… TPU usage should rise.

And then the kicker – the part today’s market action is validating:

NVDA is behind on TPUs. GOOGL is the only company making TPUs at scale right now.

So, the play is to invest in the GOOGL TPU supply chain.

Since that email thread on June 4, 2025, GOOGL is up 93% – nearly 4Xing NVDA’s 24% return over the same period.

Stepping back, this is hardly the first time that Luke has seen big moves coming long before Wall Street.

Let’s look at another recent example – because the opportunity to profit here is just getting started…

During a period in which the S&P jumped 64% and the Nasdaq climbed 83%, MP didn’t just trail the major indexes, it destroyed investor wealth.

Take a look…

If you’re a money manager who put clients into MP, you’re likely out of a job with this kind of performance. And for individual investors, this is a huge drag on retirement timing.

But as you’re likely aware, this wasn’t the end of the story.

Here in 2025, the U.S. government has launched a massive, multitrillion-dollar effort to secure America’s dominance in artificial intelligence and other critical technologies.

Behind this effort is a simple logical progression…

We’re in an AI race against China… Beijing controls 80% of the rare earth elements (REEs) that are critical to building out our cutting-edge AI, robotics, and defense systems… so, President Trump has been on a warpath to secure these REEs… a handful of specific REE stocks – MP being one of them – stood to benefit.

Sure enough, in July, MP Materials announced that the Pentagon would purchase $400 million of its stock, taking a 15% ownership stake through structured agreements. The stock surged, putting subscribers of our technology expert Luke Lango up about 3X on their MP investment in short order.

Now, I’m not telling this to brag on Luke, but to call your attention to something important…

The same methodology Luke used to find MP before it received that firehose of federal dollars is the same one Luke is using today to find the next target of the government.

So, if you weren’t a part of that MP surge, don’t worry – we’re still in the beginning of this government spending spree.

So, what was Luke’s methodology that enabled his early recommendation of MP?

It’s the same one he just codified and offered as a blueprint for investors today.

From Luke:

Here’s a simple three-part screen for predicting future winners:

If a company checks these three boxes, it’s a strong candidate for federal support… and often just one announcement away from a major stock move.

According to him, we’re entering Act 2 of a massive, government-driven tech push – one that could send a new class of companies soaring as Washington deploys more capital, more contracts, and more strategic investments.

We’re talking rare earths, semiconductors, small nuclear reactors, robotics, advanced software, and drone technologies – it’s an enormous opportunity set with triple- even quadruple-digit return opportunities.

Back to Luke:

There are dozens of companies that haven’t yet received federal backing… but almost certainly will.

And investors who buy those companies before Washington strikes will capture the biggest gains of the entire AI Boom.

I’m talking about potential 500%… 1,000%… even 2,000% returns.

This is Act 2.

Over the last six months, Luke has done a deep dive into this “Act 2” opportunity, and he’s put together his U.S. Government AI Shortlist. These are the highest-probability companies in line for investment, partnerships, or guaranteed contracts.

There’s one in particular that Luke says stands out. It sits at the very center of the AI supply chain – and Luke is giving it away.

It’s in his latest briefing in this broader opportunity. You’ll get its name, ticker, and Luke’s explanation for its 10X return possibility when you review the broader research package. It’s totally free.

If you read yesterday’s Digest, you might be asking yourself, “Now? Didn’t Luke just advise investors not to rush back into today’s market?”

Well, a few hours after yesterday’s Digest hit your inbox, Luke sent out a flurry of “Buy Alerts” from his various investment services.

Here he is from his Early Stage Investor Daily Notes explaining:

For months, we’ve walked you through every AI bear talking point — overspending, circular financing, accounting noise, valuation panic — and showed why none of it breaks the AI Boom. But we also warned: we don’t catch falling knives. We wait for strength.

Well… the turn just happened.

Sentiment is turning. The Fed is turning. The AI narrative is turning. And the next leg of the AI Boom is setting up right in front of us.

This is the moment to buy the dip in AI stocks.

Luke says the uncertainty is behind us.

This is the same analyst who spotted the TPU shift months before today’s headlines…and who handed subscribers triple-digit gains in MP…

He’s now saying the next phase of the AI Boom is officially underway.

Consider yourself ahead of the curve.

Here’s Luke’s to take us out:

The White House is actively picking and funding the companies it deems crucial to winning the 21st-century tech race.

The investors who recognize this shift will be the ones who get rich from it.

Have a good evening,

Jeff Remsburg

The post Is Google the New AI King? appeared first on InvestorPlace.

Most investors don’t see it happening in real time.

They only spot it years later, staring at a long-term chart and saying:

Oh… that was the moment everything shifted.

I’m here to tell you – not in hindsight, but right now – that one of those moments just happened.

And almost nobody is talking about it.

The mainstream media is all about the noise: Nvidia Corp.’s (NVDA) earnings reports, Michael Burry’s short positions, circular financing deals, and whether an AI bubble is popping or not.

For a moment, I want you to forget all of that. 

Because what I’m about to show you is much bigger… 

Not long ago, if you wanted to spot the next transformative tech stock, you’d follow the venture capital money in Silicon Valley or the innovation coming out of places like Caltech (my alma mater). 

Today, I’ll argue that you should follow the money flowing out of Washington, D.C. 

The U.S. government has effectively launched a modern Manhattan Project for AI – a massive, multitrillion-dollar effort to secure America’s dominance in artificial intelligence and other critical technologies. 

This initiative spans investments in advanced microchips, quantum computing, critical minerals, clean energy, and more. The White House is actively picking and funding the companies it deems crucial to winning the 21st-century tech race.

And if you don’t understand what that means for your portfolio, you’re going to miss the most explosive wealth-creation window since the early days of the internet.

So, let’s walk through why the government is suddenly acting like Silicon Valley’s new mega VC fund… and why early investors in these White House-blessed companies are seeing gains most hedge funds can only dream of.

I explain exactly how to profit – including my #1 stock pick I believe the government will target next – in a brand-new briefing I just finished recording.

But let’s start at the beginning…

The Federal AI Boom Is Rewriting How ÃÛÌÒ´«Ã½ Winners Are Chosen

We’ve seen the proof in recent months.

You’ve probably heard about all of the administration’s pro-AI initiatives, like Project Stargate.

But what you haven’t heard is how they are being used today.

We aren’t talking just subsidy bills. Or stimulus packages. Or even industrial policy plans. 

This is the federal government taking direct equity stakes in the companies it believes will determine America’s technological dominance.

And when Washington picks a winner?

The stock reacts like a powder keg.

For example, the government acquired stakes of 15% in MP Materials Corp. (MP) and 9.9% in Intel Corp. (INTC) earlier this year, among others. 

It’s a radical departure from business as usual. 

But whether one likes it or not, this bold federal intervention is now a reality. And as investors, we need to understand the implications.

Washington’s Equity Stakes Are Creating a New Class of AI Champions

What are those implications? 

Huge stock moves – to the upside – in the companies that get tapped by Uncle Sam. It turns out that betting alongside Washington can be extremely profitable. 

So far, “Uncle Sam’s portfolio” of chosen companies is trouncing the broader market. Consider that:

• Intel’s shares are up about 77% this year, 
• MP has rocketed 276%, 
• Lithium Americas Corp. (LAC) is up 50%, 
• and Trilogy Metals (TMQ) is up 204%.

All far outperforming the S&P 500’s ~13% gain. 

These stocks surged as news hit that the government was backing them with major investments or contracts.

In effect, Washington has become the world’s most powerful venture capitalist, and it’s fast-tracking a new generation of tech winners. 

And if you understand it, you can profit from it… just like we did.

How Federal Backing Sends AI Stocks Parabolic

To illustrate this pattern in action, let me share an example from our portfolio – one that we got right by being a step ahead of Washington’s move.

Mountain Pass rare-earth mine in California. Source: NASA.gov

A while back, I recommended my paid members buy shares of MP Materials at around $30. That was based on a thesis that rare earth elements (used in everything from fighter jets to electric vehicles) were a strategic priority for the U.S. 

We were right. 

In July, MP Materials announced that the Pentagon would purchase $400 million of its stock, taking a 15% ownership stake through structured agreements. In essence, MP was anointed as a national champion for rare-earth supply. 

The stock’s reaction? It surged, ultimately climbing as high as $90 at one point – a triple from our entry price. 

We managed to be there before the White House money arrived, but truth be told, we had a hunch that Washington was about to step in.

A Simple Framework for Spotting the Next Federal AI Champion

How did we know MP was likely to get federal support?

We spotted a clear pattern in how the White House and Pentagon were picking national champions and refined that into a simple three-part screen for predicting future winners:

If a company checks these three boxes, it’s a strong candidate for federal support… and often just one announcement away from a major stock move.

Indeed, MP checked every box:

• Right Industry: Rare earths are officially classified as vital to U.S. national security, and China controls the supply chain. Washington had already signaled it wanted a domestic producer. MP runs America’s only major rare-earth mine – an obvious match.
• Right Company: In rare earths, MP is the strongest U.S. operator, with its Mountain Pass mine in California, proven output, and big expansion goals. If the U.S. wanted a rare-earth champion, MP was it.
• Right People/Relationships: MP CEO James Litinsky’s brother Andrew Dean Litinsky (Andy Dean) was a candidate on the 2004 season of The Apprentice… where he got “fired” by Donald Trump. Andy Dean later landed a role within the Trump Organization and helped get Truth Social started. While this doesn’t prove causation, it underscores how visibility, networks, and strategic alignment can accelerate federal attention.

Using this blueprint, we’re now scanning publicly held AI, semiconductor, advanced manufacturing, energy, and critical material companies. The rules of capitalism are changing… and Washington is now a copilot steering capital into specific sectors.

And that brings us to the most important part…

Most Investors Still Don’t See What’s Coming

You’d think Wall Street would be all over this. But incredibly, most analysts still treat these moves as “one-offs.”

They look at MP Materials and think: “Huh, cool. The Pentagon invested in a miner.”

They look at Intel and say: “Interesting, a government-backed chip expansion.”

They think these are isolated events.

They’re not.

They’re Act 1.

The Office of Strategic Capital has already published its roadmap – listing every chokepoint in America’s AI supply chain.

The White House has already declared rare earths, semiconductors, small nuclear reactors, robotics, advanced software, and drone technologies as mission-critical

And the Pentagon, the Department of Energy, and others have begun allocating capital to secure each of these links.

This means there are dozens of companies that haven’t yet received federal backing… but almost certainly will.

And investors who buy those companies before Washington strikes will capture the biggest gains of the entire AI Boom.

I’m talking about potential 500%… 1,000%… even 2,000% returns.

The U.S. Government’s AI Shortlist – and Why It Matters

This is Act 2.

And over the past six months, I’ve worked hard to build what I call: The U.S. Government AI Shortlist.

This is the list of companies I believe are next in line to receive federal investment, partnerships, or guaranteed contracts.

And one company stands out on that list above all others.

It sits at the very center of the AI supply chain. It’s U.S.-based. It’s critical to national security. Government agencies have already signaled strong interest.

And I don’t see anyone talking about this company right now. 

It may be the most under-the-radar investment in the market today. 

That’s why I put together a new presentation on this very topic. 

Inside my new urgent briefing, I reveal:

• The company’s name…
• Its ticker symbol…
• Why I believe it could soar 10X or more…
• And the exact signals I’m watching for a government-confirmed deal…

You don’t need to buy anything to watch this briefing.

Just click the link here and get this info for free.

I believe we’re witnessing the moment Wall Street lost sight of the AI Boom…

Not because of Nvidia’s earnings. Or Michael Burry’s warnings. Or any of the nonsense that the mainstream media just keeps spouting.

But rather, because of Washington. 

And the investors who recognize that shift now will be the ones who get rich from it.

Click here to watch my latest presentation now.

The post The Day Wall Street Lost Control of the AI Boom appeared first on InvestorPlace.

Around the world, governments are going beyond passive support. They’re taking equity stakes in strategic tech firms, directing billions into critical infrastructure and accelerating once-slow projects with lightning speed.

My colleague Luke Lango exposes how this new wave of government-backed investing is reshaping the future of AI, energy, semiconductors and more. These aren’t just policy moves – they’re turning stocks that were once unheard of into big names, and triggering gains of 100%, 200%, even 400% in a matter of days after federal support is announced.

Luke has been ahead of this trend for months – and he’s just released a brand-new presentation revealing what he believes is the next government-backed stock with 500%+ potential.

If you want to position ahead of the next big move, you’ll want to hear what he has to say. Click here to watch his presentation now.

And now, I’ll turn it over to Luke…

***

Washington, D.C., last week

I wasn’t there, but imagine it played out something like…

The ballroom at the U.S.–Saudi Investment Forum is packed — diplomats, CEOs, billionaires, security everywhere.

Then the room shifts.

Tech billionaire Elon Musk walks in.

Right beside him: Jensen Huang, the CEO of Nvidia Corp. (NVDA), the company powering the AI Revolution.

They take the stage. No hype. No theatrics. Just a quiet announcement that sends a jolt through the crowd.

Saudi Arabia is backing one of the most ambitious AI projects ever attempted — a hyperscale data center built around 600,000 GPUs from Nvidia.

Musk confirms xAI will be the first customer.

A nation-state is building a supercenter for a single private company.

It had to be one of those moments when everyone in the room realizes the future just jumped forward.

Let’s put it in perspective…

This single project will consume 500 megawatts of Nvidia hardware alone. Advanced Micro Devices Inc. (AMD), Qualcomm Inc. (QCOM), and Cisco Systems Inc. (CSCO) will help deliver another gigawatt of AI silicon and infrastructure by 2030.

That’s the scale of national energy grid projects — not tech firms.

And that’s exactly the point.

AI is no longer driven solely by Silicon Valley.

Governments, sovereign wealth funds, and national priorities are shaping it. Power blocs are now directly funding — and effectively choosing — which AI platforms and chipmakers will dominate the next decade.

For investors, that matters.

Companies nobody talked about a year ago are suddenly doubling, tripling, or even quadrupling after a single announcement:

A government stake…

A partnership…

A federal contract…

And the stock erupts.

Last week, Saudi Arabia made its move.

Washington is doing the same.

And as I’ll show you today, the administration isn’t just subsidizing AI growth — it’s picking winners.

And when Washington anoints a winner, stocks don’t just rise… they explode.

So today, we’ll walk through why this shift is so significant — and why I’ve prepared a new briefing on what I believe could be the next D.C.-backed winner.

But first, let’s break down exactly what’s happening here…

Why Washington Is Suddenly Playing Venture Capitalist

America just entered the biggest technological arms race since the dawn of the nuclear era… and the administration is treating victory as a national-security emergency.

First came Executive Order 14179. Then, a 28-page AI Action Plan.

Next, billions in CHIPS Act funding. New trade-tech allocations, federal partnerships with OpenAI, and fresh Pentagon AI directives.

And now: the Office of Strategic Capital — an agency designed to invest directly in critical material and technology firms.

This is not ordinary policy.

As I explain further in my newest free broadcast, this is an AI Manhattan Project.

For the first time in modern history, the U.S. government isn’t just subsidizing technology… it’s taking equity stakes.

For example…

Examples:

• Pentagon: 15% stake in MP Materials Corp. (MP) + $150 million loan to boost rare earth production
• White House: 10% stake in Intel Corp. (INTC), worth $8.9 billion
• Department of Energy: 5% stake in Lithium Americas Corp. (LAC) + project financing for the Nevada project
• Pentagon: $35.6 million for a 10% stake in Trilogy Metals Inc. (TMQ) for critical mining in Alaska

Every one of them surged at least high double-digits after receiving the White House stamp of approval. Most soared by 100% or more.

A few ripped as much as 400% in a week.

We’re talking violent re-ratings driven by the most powerful capital allocator on Earth.

And here’s the key.

This is only the beginning.

Why You Must Be Early

Most investors will hear about these deals after they happen.

That’s too late.

By the time the average person sees the headline… the juicy part of the move has already happened.

That’s why I’ve spent the past several months building a list — not of companies that already received government backing — but to tell you about the companies most likely to be next.

The Pentagon has already published its roadmap. The White House has already outlined its priorities. The Office of Strategic Capital has already identified chokepoints.

The signals are there.

You just need to know how to interpret them.

And that’s exactly what I’ve done.

In fact, I just recorded a brand-new urgent briefing that walks investors through:

• The $8.9 trillion AI infrastructure plan reshaping the economy
• Why the White House is taking equity stakes in private-sector tech firms
• How to identify the “next in line” before the news hits
• And the name of the company I believe is about to become the next 500%-plus federal-backed winner

This may be the most important presentation I’ve released in a few years.

Because if history teaches us anything, it’s this:

When Washington opens the money spigot and starts picking winners, early investors don’t just make money… they build fortunes.

And the next one is coming fast.

Washington is no longer just writing checks and hoping innovation follows — it’s actively picking the companies it believes are critical to America’s technological and national-security future.

Just like the Saudis did last week with the new xAI-Nvidia project.

When that kind of money, momentum, and political backing converges on a handful of names, the result can be explosive moves in their stock prices.

My goal is simple: To help you get in front of those moves — not read about them after the fact.

Click here to watch my latest presentation now. 

Sincerely,

Luke Lango

Editor, Innovation Investor

The post The Real AI Boom Isn’t Coming Out of Silicon Valley appeared first on InvestorPlace.

I wasn’t there, but imagine it played out something like…

The ballroom at the U.S.–Saudi Investment Forum is packed – diplomats, CEOs, billionaires, security everywhere.

Then the room shifts.

Tech billionaire Elon Musk walks in.

Right beside him: Jensen Huang, the CEO of Nvidia Corp. (NVDA), the company powering the AI Revolution.

They take the stage. No hype. No theatrics. Just a quiet announcement that sends a jolt through the crowd.

Saudi Arabia is backing one of the most ambitious AI projects ever attempted – a hyperscale data center built around 600,000 GPUs from Nvidia.

Musk confirms xAI will be the first customer.

A nation-state is building a supercenter for a single private company.

It had to be one of those moments when everyone in the room realizes the future just jumped forward.

Let’s put it in perspective…

This single project will consume 500 megawatts of Nvidia hardware alone. Advanced Micro Devices Inc. (AMD), Qualcomm Inc. (QCOM), and Cisco Systems Inc. (CSCO) will help deliver another gigawatt of AI silicon and infrastructure by 2030.

That’s the scale of national energy grid projects – not tech firms.

And that’s exactly the point.

AI is no longer driven solely by Silicon Valley.

Governments, sovereign wealth funds, and national priorities are shaping it. Power blocs are now directly funding – and effectively choosing – which AI platforms and chipmakers will dominate the next decade.

For investors, that matters.

Companies nobody talked about a year ago are suddenly doubling, tripling, or even quadrupling after a single announcement:

A government stake…

A partnership…

A federal contract…

And the stock erupts.

Last week, Saudi Arabia made its move.

Washington is doing the same.

And as I’ll show you today, the administration isn’t just subsidizing AI growth – it’s picking winners.

And when Washington anoints a winner, stocks don’t just rise… they explode.

So today, we’ll walk through why this shift is so significant – and why I’ve prepared a new briefing on what I believe could be the next D.C.-backed winner.

But first, let’s break down exactly what’s happening here…

Washington’s New AI Strategy: Becoming a Powerful Venture Capitalist

America just entered the biggest technological arms race since the dawn of the nuclear era… and the administration is treating victory as a national-security emergency.

First came Executive Order 14179. Then, a 28-page AI Action Plan.

Next, billions in CHIPS Act funding. New trade-tech allocations, federal partnerships with OpenAI, and fresh Pentagon AI directives.

And now: the Office of Strategic Capital – an agency designed to invest directly in critical material and technology firms.

This is not ordinary policy.

As I explain further in my newest free broadcast, this is an AI Manhattan Project.

Government-Backed AI Winners Are Outperforming the ÃÛÌÒ´«Ã½

For the first time in modern history, the U.S. government isn’t just subsidizing technology… it’s taking equity stakes.

For example…

Examples:

• Pentagon: 15% stake in MP Materials Corp. (MP)+ $150 million loan to boost rare earth production
• White House: 10% stake in Intel Corp. (INTC), worth $8.9 billion
• Department of Energy: 5% stake in Lithium Americas Corp. (LAC) + project financing for the Nevada project
• Pentagon: $35.6 million for a 10% stake in Trilogy Metals Inc. (TMQ) for critical mining in Alaska

Every one of them surged at least high double-digits after receiving the White House stamp of approval. Most soared by 100% or more.

A few ripped as much as 400% in a week.

My paid members at Innovation Investor had the opportunity to harvest gains of 228%-plus after…

We’re talking violent re-ratings driven by the most powerful capital allocator on Earth.

And here’s the key.

This is only the beginning.

Why You Must Be Early

Most investors will hear about these deals after they happen.

That’s too late.

By the time the average person sees the headline… the juicy part of the move has already happened.

That’s why I’ve spent the past several months building a list – not of companies that already received government backing – but to tell you about the companies most likely to be next.

The Pentagon has already published its roadmap. The White House has already outlined its priorities. The Office of Strategic Capital has already identified chokepoints.

The signals are there.

You just need to know how to interpret them.

And that’s exactly what I’ve done.

The Next AI Winner Will Be Chosen by Policy, Not Silicon Valley

In fact, I just recorded a brand-new urgent briefing that walks investors through:

• The $8.9 trillion AI infrastructure plan reshaping the economy
• Why the White House is taking equity stakes in private-sector tech firms
• How to identify the “next in line” before the news hits
• And the name of the company I believe is about to become the next 500%-plus federal-backed winner

This may be the most important presentation I’ve released in a few years.

Because if history teaches us anything, it’s this:

When Washington opens the money spigot and starts picking winners, early investors don’t just make money… they build fortunes.

And the next one is coming fast.

Washington is no longer just writing checks and hoping innovation follows – it’s actively picking the companies it believes are critical to America’s technological and national-security future.

Just like the Saudis did last week with the new xAI-Nvidia project.

When that kind of money, momentum, and political backing converges on a handful of names, the result can be explosive moves in their stock prices.

My goal is simple: To help you get in front of those moves – not read about them after the fact.

Click here to watch my latest presentation now.

The post The White House Is Quietly Picking AI’s Biggest Winners appeared first on InvestorPlace.

In the wake of some painful action on Wall Street last week, millions of investors have one question in mind…

Is Nvidia (NVDA) the one stock they can’t afford not to own – or the one they should be most afraid of owning?

Though headlines continue to celebrate Nvidia’s breathtaking financial results and its central role in the AI revolution, is this still where investors want to trust their money today?

Let’s wrestle with the answer.

Stepping back, here at InvestorPlace, we’re proud to feature some of the brightest, most successful analysts in our industry. And part of what makes our work valuable to readers is that our experts don’t always agree. They look at the same company, the same data, the same macro environment – and sometimes reach different conclusions.

That’s the case with Nvidia.

Two of our most respected analysts – Louis Navellier of Growth Investor, and Eric Fry of Fry’s Investment Report – agree that Nvidia is a phenomenal business run by world-class leadership. But they disagree on whether the stock is a “buy” today.

Let’s explore why, and what it means they’re doing differently in their portfolios.

Let’s jump in with Louis…

For legendary investor Louis Navellier, Nvidia is no longer just a great tech company – it’s the new market anchor.

And Louis speaks from experience. He recommended Nvidia to his Growth Investor subscribers back in 2019 – long before the AI boom – and they’re now sitting on gains of more than 4,000%.

But even after that return, Louis sees Nvidia as a once-in-a-generation investment with leadership akin to Apple under Steve Jobs or Berkshire Hathaway under Warren Buffett. He says that CEO Jensen Huang has become the defining voice of this era of innovation:

When Jensen speaks, the AI world listens… and so does Wall Street.

Meanwhile, the company’s most recent earnings were a reminder that AI demand isn’t plateauing – it’s accelerating.

Here’s Louis:

NVIDIA delivered another outstanding quarter – one that should put to rest any speculation about a slowdown in AI demand.

The numbers certainly back him up. As we covered in the Digest last week, Nvidia posted:

• $57 billion in quarterly revenue (up 62% year over year)
• $51.2 billion from data centers alone
• Record visibility, with $500 billion in booked orders for 2025–2026
• Blackwell GPUs and systems effectively sold out

Plus, Louis sees something deeper happening beneath the headlines. Wall Street may debate margins or guidance language, but the global AI buildout – across cloud computing, frontier model developers, hyperscalers, and enterprise – is still in its early innings.

He highlights the commitments piling up across the ecosystem, including the massive multi-billion-dollar agreements with Microsoft and Anthropic, as well as OpenAI’s eye-popping spending plans. He concludes:

AI demand isn’t moderating – it’s broadening… and it highlights just how early we still are in this buildout.

So, for Louis, Nvidia isn’t close to reaching its peak. The AI economy is just getting started, and Nvidia remains its backbone.

Bottom line: For investors who believe AI is still in its adolescence, Nvidia remains a compelling core holding.

Now, for the other side of the trade…

Eric doesn’t dispute Nvidia’s greatness. Instead, his focus is on valuation and risk.

He begins by acknowledging Nvidia’s success:

Now, I am not here to claim that Nvidia is a terrible stock. It’s not. It’s been a great stock. And it remains a great company run by great people.

But he cautions that the “easy money” may already be behind us.

He points to the rapid AI arms race – hundreds of billions in spending from Big Tech companies to compete in AI chips, infrastructure, and model development. That wave of capital, he argues, raises risks for Nvidia’s margins and future profitability:

In October 2024, Nvidia had a 76.4% gross margin. Now, it’s down to 73.4%.

At the same time, Nvidia faces the growing threat of customers becoming competitors.

Google, Apple, and Meta are all accelerating development of their own chips. These companies don’t just want to control their compute – they want to reduce dependency on Nvidia’s premium-priced hardware.

Here’s Eric:

All of these chips were created to reduce dependency on Nvidia, which could eventually get cut out of the picture altogether.

Finally, he highlights marquee investors like Peter Thiel (via his hedge fund), Michael Burry (of “The Big Short” fame), and SoftBank, which are exiting or betting against the stock – moves he interprets as early warnings that risk is rising.

Bottom line: Eric isn’t calling for Nvidia’s downfall. He believes it’s priced for perfection in a market where perfection rarely lasts. As a result, he sees better opportunities elsewhere.

This Nvidia debate captures something larger happening across the market right now.

Today, many investors believe we’re in the late innings of a historic bull run. Whether that’s true or not, many beloved stocks are priced for perfection – and even if this bull has many years of life left, great companies can become risky bets if valuations run too far ahead of fundamentals.

So, the question isn’t whether AI is transformative. Both Louis and Eric agree it is. The question is where the next wave of wealth creation will flow – and whether investors are better served by riding the giants higher or positioning in the opportunities flying under the radar.

And that dovetails into action steps…

Despite their different views on Nvidia’s stock today, both Louis and Eric are bullish on AI – viewing it as one of the greatest wealth-creating forces of our lifetimes.

But let’s dig deeper and look at exactly how they’re acting on this.

For Louis, Nvidia remains a core long-term holding. It’s a “Buy.” But he’s also looking beyond the AI darling…

His latest research finds that some of the most explosive gains ahead will come from the under-the-radar companies building the AI infrastructure – systems, software, data center technology, and industrial capacity powering what he calls the coming Economic Singularity.

He has recently highlighted a group of these lesser-known names that he believes are positioned to benefit the most. You can learn more about them right here.

Eric agrees that AI is transformative – but he believes many mega-cap AI stocks – not just Nvidia, but also Amazon (AMZN) and Tesla (TSLA) – are now too richly priced for comfort (disclaimer: I own AMZN).

He’s redirecting capital into earlier-stage, undervalued companies that can benefit from the AI wave without the valuation risk that comes with trillion-dollar giants.

He recently released a “Sell This, Buy That” research package that explains his “sell” recommendation for Nvidia, Amazon, Tesla, and reveals what he’s buying instead. He gives away three recommendations – free of charge. You can access it right now, right here.

At the end of the day, Nvidia remains one of the most important companies in the world -but whether it’s the right stock for you depends on how you want to capture the next decade of AI-driven growth.

What matters most is choosing the strategy that aligns with your risk tolerance, your time horizon, and the type of opportunities you believe will lead the next wave of innovation.

Now, both Louis and Eric make compelling cases. But for readers wondering about timing – whether to hold, add, or reduce exposure today – our technology expert Luke Lango offers tactical guidance for what to do today…

I didn’t get to cover Thursday’s shocking market reversal in Friday’s Digest – we featured Luke’s deep dive on Nvidia’s results and AI opportunities instead.

Fortunately, my co-Digest-writer and our Editor in Chief, Luis Hernandez, delivered a strong roundup of our analysts’ takeaways on Saturday. If you missed that issue, you can find it here.

But let’s zero in on the key tactical question right now…

Is this a “buy back in” moment? After all, as I write on Monday, the markets are up, though it’s an unequal performance.

While the Dow is barely higher, the Nasdaq is up almost 2%.

What’s the right move?

Here’s Luke:

Stay invested — but don’t get cute trying to bottom-fish.

Technical support is nearby: the S&P 500 is down 5% from highs, sitting on its 100-day moving average, RSI is at 36, and the VIX has spiked above 25. Those are textbook bottoming conditions.

But — and this is key — don’t buy dips. Buy bounces.

We need confirmation: a hold of support + a catalyst.

Nvidia earnings were supposed to be that catalyst. They weren’t. The next one arrives in three weeks at the December FOMC meeting.

Zooming out, last Friday gave us our first clear “hold of support,” as Luke described. That strength is continuing today. But with Luke pointing to the FOMC meeting as the next catalyst, there’s no reason to rush back in.

In the meantime, we can expect both bulls and bears to probe the market’s resistance and support levels in the coming days. So, avoid overreacting to these tests – don’t turn overly bearish if we get another sharp downdraft…or overly bullish if we see a vigorous bounce.

Steady, disciplined positioning remains the name of the game right now.

Here’s Luke’s bottom line:

Be patient. The AI Boom is alive and well.

AI stocks will bounce. But don’t try to catch the falling knife.

Keep your buy list tight. Keep your powder dry. And wait for the market to show you it’s ready to turn.

Luke’s call for patience is backed by something worth watching…

Despite the selling pressure since late October, fund managers are holding historically low cash levels – a warning sign that’s been accurate 20 out of 20 times since 2002.

From Fortune, last week:

Fund managers are currently running extremely low cash levels, dropping to 3.7%.

Historically, cash levels at or below 4.0% function as a “sell signal” for global equities.

BofA notes that this low cash level has occurred 20 times since 2002, and on every occasion, stocks subsequently fell in the following one to three months.

The BofA report suggested that market “froth” may correct further without a December rate cut from the Federal Reserve.

Here’s a chart showing how depleted cash levels are…

Whether you view it as dry powder for future bargains or a buffer against downside risk, cash gives you options.

So, do you have enough?

The question we opened with – whether Nvidia is a must-own or a must-avoid – doesn’t come with a simple answer. It ultimately depends on your strategy, your time horizon, and how you want to participate in the AI revolution.

What’s clear, however, is that Louis and Eric both agree on one thing…

AI is transformative, and your portfolio should reflect that reality – whether or not you choose to tie your gains directly to Nvidia at this stage.

We’ll continue monitoring both perspectives – along with the timing of Luke’s greenlight to wade back into the market – here in the Digest.

Have a good evening,

Jeff Remsburg

The post Two Top Analysts Disagree on Nvidia — Here’s Why appeared first on InvestorPlace.

And after reporting near-perfect results – with strong sales, earnings and upbeat guidance – it looked poised to do just that.

However, the AI Revolution’s leader also reported an 89% jump in receivables. That triggered fears that customers buying NVIDIA chips might not be able to afford them.

Add on stubborn “AI bubble”… and this led to NVIDIA selling off quickly.

I think the receivables argument is bogus because NVIDIA isn’t going to sell chips to people if they don’t get paid.

It’s an example of markets reacting but not thinking.

So, in Sunday’s Navellier ÃÛÌÒ´«Ã½ Buzz – my weekly YouTube video podcast – I did a deep dive with special guest Adam Johnson about what happened with NVIDIA and what’s really going on.

We also talked about the scrapped merger of private credit funds by Blue Owl Capital Inc. (OWL), concerns around AI data center power shortages and the Federal Reserve’s tone ahead of its December 10 meeting.

Click the image below to watch now.

To see more of my videos, click here to subscribe to my YouTube channel. And if you’d like to learn about Adam, check out his website, Bullseye Brief, here.

Plus, the grades in Stock Grader (subscription required) have been updated this week! Click here to plug in your own stocks and see how they’re rated.

The Hidden Signal Behind the Noise

Everything Adam and I discussed in this week’s episode is evidence of a signal hiding behind all of the noise.

We’re reaching the point where AI demand and capital investment are accelerating faster than the traditional financial system can fully digest.

It’s why NVIDIA’s “perfect” earnings can still spark panic, why data center buildouts are overwhelming the grid, why private lenders are hitting structural limits and why the Fed suddenly sounds like it’s racing to keep up.

This signal is something that I’m calling the Economic Singularity.

This is the moment where AI, automation and exponential computing begin driving economic outcomes faster than humans can model or manage.

It’s behind all the volatility, confusion and opportunity we’re seeing today.

And as history shows, investors who understand a shift like this early stand to benefit the most.

If you want to know which sectors benefit, which ones get disrupted and what to buy now, you’ll want to watch my Economic Singularity special briefing now.

I also share how you how you can access my exclusive report featuring seven stocks set to benefit from this shift.

It’s entirely free to watch, so I encourage you to click here to learn more.

Sincerely,

Louis Navellier

Editor, ÃÛÌÒ´«Ã½ 360

The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

NVIDIA Corporation (NVDA)

The post The Real Reason NVIDIA Tanked After “Perfect” Earnings appeared first on InvestorPlace.

40% off select models. Up to 70% off clearance. Limit one coupon code per customer.

We’ve been bombarded with Black Friday deals for weeks now. What used to be a one-day-only, in-store event has turned into a month-long celebration of “the best deals of the year.”

So, in the spirit of the week, I’d like to share a relatively cheap and underappreciated AI play that I’ve been watching throughout 2025.

Let’s take a look…

PayPal Holdings Inc. (PYPL) is a titan of the digital payments industry. 

The company traces its history to the year 2000, when Elon Musk merged his online bank, X.com, with Peter Thiel’s software company, Confinity, to form PayPal. The merged entity started spinning gold almost immediately for Musk and Thiel, as the inventive pair sold the company to eBay Inc. (EBAY) just two years later for $1.5 billion. 

Then in 2015, eBay spun out PayPal as a separately traded company, which it has remained ever since. (Interestingly, 2015 was also the year that Musk and Thiel partnered up again to form OpenAI, the company that would go on to create the AI sensation, ChatGPT.) 

PayPal’s dominant position in the “branded checkout” segment has powered most of its growth. The “PayPal/Venmo” checkout button you might see when shopping online is an example of that business. Around 80% of the top 1,500 retailers in North America and Europe feature PayPal in their digital wallets. 

But PayPal is not taking its success for granted. The company is fortifying its market leadership by integrating leading-edge AI and machine-learning processes into key aspects of its operations. For example, the company uses AI to detect fraudulent transactions and to boost the approval rate of valid transactions.

Now, PayPal is getting ready to dominate a new market…

Agentic AI commerce.

Starting in 2026, OpenAI will integrate PayPal’s wallet and payment technology into ChatGPT’s “Instant Checkout” experience. This will allow users to complete purchases directly inside the chatbot.

PayPal controls the full checkout user interface (UI) and authentication flows. That means an AI agent can open sessions, request approval, store consent, and authorize transactions, all within a single session.

That makes it far easier to monitor AI agents and add appropriate guardrails. And if an AI makes an honest mistake, PayPal can easily reverse the transaction without going through merchant banks. It’s a one-stop payments shop.

In other words, agentic e-commerce will be a game-changing technology, even if the details are not yet fully known. Generative AI is not limited to text and speech… nor is it even limited to real-life photos or videos. Instead, it could become a personal shopper that generates outputs in whatever format you choose.

And that means PayPal is sitting at the cusp of a potential breakout.

Perhaps the most remarkable aspect of PayPal today is its valuation.

The San Jose, California-based company is priced more like a zero-growth merchant bank than a fintech platform. A post-Covid slowdown in e-commerce spooked markets, and investors were concerned that PayPal had chased unprofitable businesses during the boom years.

This is an exaggeration of PayPal’s “demise.”

Over the next three years, analysts expect this fintech company’s revenues to grow 19% and its profits to rise 31%. And if AI agentic commerce truly takes off, we will see these growth numbers occur at an annual pace instead.

There’s your Black Friday bargain… on Monday.

PayPal isn’t the only underappreciated AI play that I recommend. You can check out my other Black Friday bargains at Fry’s Investment Report.

Click here to learn more.

Now, let’s look at what we covered here at Smart Money this past week…

Smart Money Roundup

November 19, 2025

The Healthcare Discount Too Big to Ignore

In a market obsessed with AI stocks, few investors seem to care how extensively the biopharmaceutical industry has integrated AI technologies. That oversight is exactly what creates opportunity. Away from the crowds and the blinding lights, drug companies are quietly entering a period of renewed strength, much like they did in the early 1990s. That’s why I’m raising a glass to an overlooked biopharmaceutical company with the hidden capacity to deliver outsized gains.

November 20, 2025

Don’t Be Fooled by Nvidia’s Earnings – Why It’s Still a “Sell”

Celebrations ensued last week as Nvidia’s stock rallied after it reported third-quarter earnings, though it fizzled almost immediately. Either way, it’s a major “Sell” in my book. So, I’ll explain why you should keep Nvidia out of your portfolio. Then, I’ll share another Big Tech stock I believe is a “Sell,” and tell you about some companies you should shift your attention to instead. Click here to read more.

November 22, 2025

The ÃÛÌÒ´«Ã½ Now Runs on Two Engines – and Only One Is Built to Last

The defining feature of late-2025 America is an economy with two heartbeats: One is pulsing with stock-market wealth and travel points, the other murmuring under credit strain and job anxiety. That imbalance might drop a banana peel in the stock market’s path. No reason to panic just yet, but ample reason to prepare. So, let’s take a closer look at this economic split personality… and the new challenges and considerations it presents for investors.

November 24, 2025

The Fed Can’t Fix U.S. Housing – Here’s How The White House Might

The American housing market is reaching a breaking point. What’s unfolding isn’t a typical real estate cycle; it’s a structural crisis affecting young families, retirees, builders, lenders, and investors alike. But where there’s crisis, there’s also the potential for a policy-driven reset. Luke Lango joins us to break down why the system is so broken, what levers the White House could pull, and which companies stand to benefit most if this policy catalyst hits.

Looking Ahead

Now, PayPal isn’t the only entity pioneering a new AI era.

The U.S. government has launched a modern “Manhattan Project for AI” – a multitrillion dollar effort to secure America’s dominance in artificial intelligence. As part of this initiative, Washington is partnering directly with select U.S. companies it views as critical to winning the AI race.

These government-backed companies are soaring as high as 400% in as little as a week when investment or contracts hit the news.

My InvestorPlace colleague Luke Lango has identified seven companies that he believes are next in line for government support and could reasonably soar 10X as this AI boom accelerates.

He will be joining us in your next Smart Money issue to detail how Washington is creating the next generation of AI millionaires… and where you can access the companies he believes are set to profit.

So, be sure to keep an eye on your inbox.

Regards,

Eric Fry

Editor, Smart Money

The post A Black Friday Bargain Hiding in Plain Sight appeared first on InvestorPlace.

This Week’s Ratings Changes:

Upgraded: Strong to Very Strong

Downgraded: Very Strong to Strong

Upgraded: Neutral to Strong

Downgraded: Strong to Neutral

Upgraded: Weak to Neutral

Downgraded: Neutral to Weak

Upgraded: Very Weak to Weak

Downgraded: Weak to Very Weak

To stay on top of my latest stock ratings, plug your holdings into Stock Grader, my proprietary stock screening tool. But, you must be a subscriber to one of my premium services.

To learn more about my premium service, Growth Investor, and get my latest picks, go here. Or, if you are a member of one of my premium services, you can go here to get started.

Sincerely,

Louis Navellier

Editor, ÃÛÌÒ´«Ã½ 360

The post Alphabet Upgraded, Costco Downgraded: Updated Rankings on Top Blue-Chip Stocks appeared first on InvestorPlace.

The personal computer… the internet… mobile connectivity… the cloud.

Every era has crowned new winners – and richly rewarded investors who spotted them early.

Take Apple (AAPL). The now-titanic firm began as a scrappy computer maker before reinventing itself with the iPhone and iPad. After going public in 1980 at around $22, it became the first U.S. company to hit a $2 trillion market cap in 2020.

Microsoft (MSFT) rode a similar wave. From its $21 IPO, it dominated the PC and internet-software era. And today, it trades above $470 – a gain of more than 2,100%.

Alphabet (GOOGL) defined the cloud era, and now it’s being supercharged by AI. Its revenue has exploded from just $3.18 billion in 2004 to more than $350 billion in 2024.

But every boom has a bust – and fortunes can vanish as quickly as they appear.

Look at Cisco (CSCO). The company went public in 1990 and soared as it became the backbone of the early internet, peaking around $80 in March 2000. Then the dot-com bubble burst. 

A bloated valuation, excess inventory, and deteriorating conditions hit hard. But what truly cemented the collapse was likely circular financing.

At the height of the boom, Cisco not only sold networking gear – it helped finance the internet service providers that were buying it, temporarily inflating demand. When those customers collapsed, Cisco was left holding bad loans and weak sales, making the stock’s bust unavoidable.

Today, similar financing fears have investors dumping AI names – especially Nvidia (NVDA) – as money moves in circles across the AI build-out.

But the real question isn’t whether the money loops. It’s whether that loop eventually lands on real, lasting end-market demand.

And that’s exactly what we’ll explore in today’s issue…

How AI Vendor Financing Works (and Why Investors Are Watching Closely)

At a high level, the AI stack today looks like this:

Nvidia + chipmakers → AI infrastructure players (hyperscalers, GPU clouds, lessors, data centers) → Model providers & AI apps → Enterprises & end users

Now layer the money that flows on top:

• Nvidia and other vendors do more than just sell chips; they invest in GPU clouds and infra startups, and offer great terms, long pay-later windows, or system-level deals.
• Infra players use vendor capital, debt (often collateralized by GPUs), and equity from VCs/strategics to buy more GPUs and build more data centers.
• Model providers & AI apps rent that capacity and resell it as AI APIs, chatbots, copilots, AI tools, etc.
• Enterprises & users pay subscriptions and usage fees. That’s the real cash that should propagate back up the stack and justify all of this.

So, when people talk about ‘circular money’ here, they’re pointing to the fact that Nvidia might invest in an AI infrastructure company… which then buys billions of dollars of Nvidia hardware… which lets Nvidia book huge revenue and earnings… which it can then recycle into more strategic investments.

It does sound sketchy. But here’s the key: Circular financing is only toxic if the circle never closes with real, external cash flow.

If the loop ends at a profitable customer – a retailer, bank, advertiser, etc. – who happily pays for AI-powered services because they work… then vendor financing is just an accelerant.

If the loop ends at hype and a balance sheet that never self-funds, then vendor financing is deadly…

Which is why so many folks are citing the fallout from the dot-com bust.

The Dot-Com Vendor Financing Cycle and the Lessons for AI Builders

Cisco wasn’t the only dot-com darling to go belly-up from circular financing. 

Back then, the stack looked like this:

Equipment vendors Cisco/Nortel/Lucent → Telecommunications firms & long-haul carriers (WorldCom, Global Crossing, etc.) → Dot-coms & enterprises → End users

Those telcos borrowed insane amounts of money to build long-haul fiber networks and internet infrastructure, financed via vendor loans, leasing arrangements… Some equipment vendors even took equity stakes in carriers who then bought more of their gear.

On paper, it all made sense. Internet traffic was exploding. Everyone expected we were moving into an all-IP, bandwidth-everywhere future. The mantra was basically: ‘If we build it, demand will show up – with thick margins.’

And for a while, they were right. Demand really was booming, just like it is with AI today.

But that didn’t last… 

Overbuilding, Overspending, and the ‘Dark GPU’ Parallel

The problem wasn’t that there was no demand. It was that companies built way more infrastructure than profitable demand could fill.

Telcos laid tens of millions of miles of fiber, much of which stayed ‘dark’ (unused). Supply vastly outpaced profitable demand. Bandwidth prices collapsed, and capacity became a commodity.

When financing conditions tightened, Telcos slashed capex. Many went bankrupt (WorldCom, Global Crossing, 360networks, etc.). Equipment vendors had to take massive write-downs on vendor loans and unsold inventory. And the whole vendor-financing flywheel seized.

The internet itself didn’t die. The financing structure did. And the ‘dark fiber’ became the symbol of what killed the cycle: too much infrastructure, not enough profitable end-market demand, and too much leverage in between.

That’s exactly what today’s AI bears are warning about – but now with ‘dark GPUs’ instead of dark fiber.

Why Today’s AI Financing Looks Stronger – For Now

So… Are we just replaying 1999 with GPUs instead of routers?

Well, the structure rhymes; but so far, the substance is very different.

In the ’90s:

• The real end customers were fragile – dot-coms with no profits and enterprises just dabbling with the web.
• Telcos were insanely levered and structurally weak.

Today:

• The main buyers of AI infrastructure are Microsoft, Google, Amazon (AMZN), Meta (META), Apple, Tesla (TSLA), etc.
• These companies sit on hundreds of billions in cash, with enormous amounts of free cash flow, and have deep, diversified businesses (search, social, retail, productivity, cloud).

They’re not building infra just to resell bandwidth. They’re wiring AI into ads, recommendations, search, productivity suites, dev tools, enterprise software, e-commerce, and more. 

In other words, there is real, substantial end-market demand for AI software and services and products.

Vendor Financing Isn’t the Core AI Engine

Across recent earnings… Microsoft, Google, Amazon, and Meta are all telling us some version of: ‘AI demand is outpacing supply; we’re capacity constrained; we’re raising capex again.’

Meanwhile, Nvidia is still effectively supply constrained on its highest-end accelerators. And hyperscaler capex for AI and data centers is hitting all-time highs – while management teams are framing it as catch-up, not “we built too much.”

Could that change in a few years? Absolutely. Yet, as of today, the problem is scarcity, not surplus.

And then there’s the money… 

In the dot-com era, the economic thesis rested heavily on eyeballs, page views, and ‘new economy’ metrics. The boom wasn’t measured in dollars. 

But that’s not true for AI, which is already:

• Boosting ad efficiency
• Increasing engagement in feeds and products
• Helping enterprises automate support, sales, coding, analytics
• Driving new revenue streams in cloud (via AI APIs, copilots, AI add-ons)

AI vendor financing is a risk amplifier, not the core engine. The core engine is still end-market demand for better ads, better software, better automation.

And so far, that demand looks very real.

We’re still early, and ROI will vary widely. But in our view, this is much closer to the cloud buildout than the dot-com bubble.

When the AI Financing Loop Could Crack: The ‘Dark GPU’ Risk Ahead

Now, just because the system is healthy today doesn’t mean it can’t break tomorrow.

The ‘dark GPU’ risk is very real – it’s just not a 2025 story. 

Here’s what would need to happen for the AI vendor-financing cycle to crack:

That would amount to the AI version of the dot-com bust – if the amount of infrastructure built isn’t justified by the cash flows it generates at the edge.

We are absolutely not there today.

Though, as an investor, it’s essential to follow these risks to protect our investments.

An Investor’s Dashboard for Tracking AI Financing Health

Here’s the framework I’d use going forward.

Think in terms of Green/Yellow/Red flags within three dimensions:

If that crimson combo shows up – capex cuts, weak demand commentary, pricing pressure, and infra distress – that’ll be our ‘AI dark fiber’ moment.

Now, where are we, right now, on that dashboard?

• Utilization / Demand: Green
  Hyperscalers are still complaining about not having enough capacity.
• Pricing / Unit Economics: Neutral-to-Green
  Some cost sensitivity emerging, but no broad race to the bottom.
• Capex / Middlemen Health:
  • Hyperscaler capex: Bright Green – spending is still ramping.
  • Leveraged middle layer: Yellow – business is booming; but balance sheets are stretched, and investor scrutiny is rising.

That’s not a bubble popping. That’s a boom maturing.

Could things change for the worse? Absolutely. That’s why we can’t just buy the narrative; we have to watch the signals.

But, so long as GPUs are scarce rather than dark, enterprises keep finding profitable AI use cases, and the middle layer of the AI stack stays functional…

Every fear-based headline is less of a warning…

…and more of a buying opportunity for the investors who know how to read the gauges.

The Bottom Line: Circular Doesn’t Mean Fragile Yet

As you can probably tell, this isn’t the same market we were operating in years ago. The center of gravity in American innovation has shifted. 

For example, Washington is no longer a background actor – it’s a capital allocator, a gatekeeper, and, in many cases, the decisive force behind which companies scale and which companies stall.

And that’s exactly why our research team now treats government signals the same way we treat earnings revisions, product launches, or technological breakthroughs. In a world where the White House is openly shaping strategic industries – from rare earths to chips to AI infrastructure – the ability to read those signals becomes a real edge.

Because once you understand the pattern… know how Washington picks its national champions… and can read the ‘gauges’ on both policy and market demand…

You stop guessing, and you start anticipating.

And that’s where the real opportunities emerge.

In fact, I recorded one more video for you that details one such opportunity we found this way. It’s part of the new playbook for making outsized returns – be sure to watch it before tomorrow morning, when I’ll reveal what I’ve been working toward for the past several months.

To give you a hint, we’re building our shortlist of the next potential national champions – companies that check all three boxes, sit squarely in America’s strategic interest, and stand to benefit as this AI boom matures rather than fades.

I’m excited about what we’re uncovering. And as always, I’ll keep you updated every step of the way.

Talk soon – and get ready for more.

The post What the Dot-Com Bust Teaches About Today’s AI Vendor Financing appeared first on InvestorPlace.

But where there’s crisis, there’s also the potential for a policy-driven reset.

Washington is now signaling that a National Housing Emergency could be on the table. If enacted, it could unleash supply, thaw demand, and ignite a surge across homebuilding and housing-tech stocks.

My InvestorPlace colleague Luke Lango is joining us today to break down why the system is so broken, what levers the White House could pull, and which companies stand to benefit most if this policy catalyst hits.

The coming shift could reshape both the housing market – and your portfolio – faster than most investors expect.

Take it away, Luke…

If you’ve ever heard older folks talk about the way the housing market was ‘back in their day,’ it probably sounded more like fiction than fact. I’ll never forget how bewildered I felt when my grandmother told me her first house cost $11,000…

At that time – in the early 1950s – the average home price was around $8,000, while average household income was about $4,000 per year. In other words, the price-to-income ratio back then was about 2:1 – far and away from today’s reality, estimated between 4- and 5X income.

By almost every measure, affordability is at all-time lows…

Unfortunately, supply is stuck near record lows as well. As of July 2025, America’s housing shortage has grown to an all-time high of 4.7 million units, according to research from Zillow.

Younger people can’t afford to buy. Older homeowners aren’t selling. New construction hasn’t kept up with demand. The result? The worst housing crisis in modern U.S. history. 

But the White House may be gearing up to do something about it.

Back in early September, Treasury Secretary Scott Bessent hinted that the administration could declare a National Housing Emergency this fall. He didn’t share details at the time, but make no mistake: Washington has plenty of levers it could pull to reset this market. 

We’re talking tariff and material-cost relief, incentives and grants for first-time buyers, down-payment assistance, streamlined permitting, changes in housing finance, even the use of federal land for new development.

If that happens, the market will thaw; and housing stocks could fly… 

Meaning this is a prime time to start accumulating housing-related names.

How the Housing Crisis Reached a Breaking Point

To understand why a policy shock could matter so much, you need to understand just how broken things are.

Over the past four decades, the U.S. housing market was defined by one structural tailwind: falling mortgage rates. From the early 1980s until the early 2020s, 30-year mortgage rates trended down, enabling buyers to afford higher home prices while keeping monthly payments manageable.

That all changed in 2022.

Between early 2022 and late 2023, mortgage rates spiked from 3% to 8%. That’s a 500-basis-point move – the steepest increase on record, with data going back to 1990. And rates haven’t really come down since. The average 30-year mortgage has largely hovered between 6- and 7% for two years now.

And the impact on demand has been devastating. Zillow data shows that U.S. households are now spending an average of more than 35% of their yearly income on mortgage payments for a new home, compared to less than 25% just a few years ago. Anything above 30% is considered “unaffordable.” 

Bloomberg estimates that you need nearly $120,000 in annual income to afford the average home today. But the median U.S. household income? About $80,000. That math simply doesn’t work.

Of course, these high rates didn’t just destroy demand. They froze supply, too.

Anyone who bought a home in the last 25 years almost certainly locked in a mortgage rate well below today’s market. Unsurprisingly, casual sellers have vanished… because why would you trade a 3% loan for a 7% one? The only people putting homes on the market are those who have to move. On top of that, elevated borrowing costs have made building new homes more expensive, choking off fresh supply.

So, here we are: low demand, low supply, sticky-high prices, and affordability in the gutter.

The Fed Can’t Fix Housing Alone

Now, rate cuts could help, and the Federal Reserve has started down that road. But let’s be realistic: this market is too broken for monetary policy alone to fix. It will take a policy sledgehammer.

That’s where the White House comes in.

If the administration does move forward with a National Housing Emergency, it has several levers it can pull, many of which could have fast, tangible impacts:

• Tariff and material cost relief. Reducing tariffs or granting exemptions on imported lumber, steel, or other key building materials could immediately lower construction costs.
• First-time buyer support. Grants, down-payment assistance, or expanded Federal Housing Administration (FHA) benefits would directly ease affordability challenges.
• Regulatory streamlining. Federal guidance could push localities to accelerate permitting timelines, especially on multifamily and affordable housing projects.
• Mortgage finance tweaks. Agencies like the Federal Housing Finance Agency (FHFA) and Department of Housing and Urban Development (HUD) could cut fees or loosen restrictions, while Fannie Mae and Freddie Mac could be nudged toward more flexible underwriting or targeted affordable housing initiatives.
  • We’d be remiss if we didn’t note one idea that’s also surfaced, floated recently by President Trump – the creation of a 50-year mortgage. But, in our view, that fix appears cosmetic at best and unlikely to meaningfully stimulate the housing market. An analysis by UBS found the cons would outweigh the pros: compared with a 30-year mortgage, a 50-year loan would only lower payments on a typical home by 5.4%, while saddling borrowers with roughly 225% of the total home price in interest. In other words, it stretches the affordability problem instead of solving it.
• Use of federal land. Large swaths of federally owned land could be opened to housing development, particularly in areas where zoning and local politics have created bottlenecks.

Individually, none of these measures would fix the housing market. But combined, they could meaningfully boost both supply and demand within a year. And that’s the sort of synchronized intervention that could trigger a housing boom unlike anything we’ve seen since the post-financial-crisis rebound nearly two decades ago.

The Stock ÃÛÌÒ´«Ã½ Angle: Housing Stocks That Could Soar

If the White House pulls any of those levers, housing-related stocks could rip.

We see the obvious trade in homebuilders. 

Lennar (LEN), PulteGroup (PHM), DR Horton (DHI), KB Home (KBH), NVR (NVR), Toll Brothers (TOL), Meritage Homes (MTH), Green Brick Partners (GRBK) – these are the blue chips of America’s housing construction industry. They’ll benefit directly from any boost in demand, lower material costs, or faster permitting timelines. Their order books will swell, their margins will expand, and their earnings will jump.

But here’s where I’d go a step further: the real upside lies in housing tech.

• Zillow (Z): The closest thing we have to a digital super-app for housing. If more buyers flood the market, Zillow becomes the go-to platform, especially for millennials and Gen Z.
• Opendoor (OPEN): The iBuying model thrives in higher-volume markets. If Washington can thaw out supply, Opendoor’s algorithm-driven instant offers will look increasingly attractive to sellers.
• Compass (COMP): A tech-first brokerage that could win market share as agents flock to platforms offering better digital tools.
• Rocket Mortgage (RKT): A policy-driven housing boom paired with falling mortgage rates could unleash a massive refi wave. And Rocket dominates that space; perhaps the biggest winner of them all.

These are structural disruptors poised to gain share as housing transactions migrate online. And a National Housing Emergency could be the catalyst that accelerates that shift.

Why Investors Need to Position for Housing Now

Housing affordability is becoming a generational issue, and it’s climbing the policy agenda.

The administration is looking for wins heading into 2026. And unlike many avenues, housing intervention has the potential to deliver visible, near-term relief to millions of families.

And since markets are forward-looking, if the White House even hints at a concrete emergency package, housing stocks could gap higher overnight. 

Waiting until the details are out will mean missing much of the move. That’s why now is the moment to start building exposure. Whether through the builders or the tech disruptors – or both – investors who position ahead of a National Housing Emergency declaration could be looking at one of the strongest tailwinds of the next 12 months.

And we thinkit could arrive any day now. If so, the combined impact of lower material costs, more federal land, easier mortgages, and support for first-time buyers could trigger a boom unlike anything we’ve seen since the 2008 financial crisis.

The builders will benefit. But the real asymmetric upside lies in the housing tech stack – names like Zillow, Opendoor, Compass, and Rocket Mortgage.

We face the worst affordability crunch in modern history. That’s the problem. The opportunity? When the policy hammer falls, the rebound could mint fortunes. 

And while most investors watch the Fed, the real disruption is forming elsewhere. 

A $1.9 trillion market – frozen for years – is about to thaw. And one company’s algorithmic supremacy may be the key that unlocks it.

Find out more about the innovator that could deliver 1,000%-plus gains as it fixes a broken system.

Regards,

Luke Lango

Editor, Hypergrowth Investing

The post The Fed Can’t Fix U.S. Housing – Here’s How The White House Might appeared first on InvestorPlace.

In August, I asked you to imagine a magic sorting hat that could separate out every stock that goes down. Any remaining stock would obviously increase in value, guaranteeing a great return. 

It’s much like the Eat This, Not That book series that suggests readers consume Big Macs (540 calories, 29g fat) instead of Cheesecake Factory’s Chicken and Avocado Salad (1,830 calories, 130g fat).  

If you get rid of all the “bad” in the world, the only things left would be the “good.” 

 I hope you read that August 17 Digest. Within a month, the two “Buy” stocks had risen 18% on average, while the “Sell” stock had fallen 3%. They have continued to maintain that wide gap. 

Essentially, it’s often easier than investors realize to separate attractive industries (like lithium) from unattractive ones (like coal). One is in a literal sunrise industry, thanks to solar, and has a clear role in AI data centers that require the flexibility of lithium-ion batteries. The other finds itself in a sunset industry. The best coal reserves were mined long ago, and we’re left with lower-grade product that fewer power utilities want. 

You don’t need a magic sorting hat to tell you that. 

Separating “good” from “bad” also works within an industry. Some companies have better management, superior assets, or higher-quality products than their peers. These are the firms to buy. 

To walk you through this, legendary global macro investor and InvestorPlace Senior Analyst Eric Fry has put together a presentation that explains his “Buy This, Not That” concept and provides recommendations about which stocks are set to soar… and which ones are about to plummet. 

That’s because Eric believes we’re entering the Age of Chaos, a period where previously reliable, household names are upended by a surge of dynamic, surprising companies that are poised to grow faster than we’ve seen before.  

In his free presentation, he makes recommendations on what areas are going to be great buys and what should be sold immediately. 

Today, I’d like to add one more set of “Buy This, Not That” companies to illustrate how straightforward this concept can be. 

Let’s jump in… 

Buy This Gem… 

At first glance, Hyundai Motor Co. (KRX:005380) is not an obvious “good” company. 

The South Korean car company operates in a fiercely competitive market that’s being hammered by U.S. tariffs. Roughly 60% of its cars (which include the Kia brand) are produced outside America, making Hyundai the most exposed car company to U.S. import taxes. A September immigration raid on its Georgia plant further clouded its future.  

It’s now a deep-value firm trading at less than 7X forward earnings.  

Yet, a deeper dive will quickly reveal that Hyundai has two secret weapons that quietly position it on the “good” side of stocks to buy. 

The first secret weapon involves a bit of history…. 

In 1992, Massachusetts Institute of Technology (MIT) Professor Marc Raibert spun off his robotics laboratory into a company called Boston Dynamics.  

From a technical standpoint, his firm was an incredible success. In 2005, Boston Dynamics created “Big Dog,” a four-legged pack mule robot designed for the U.S. military that could carry 340 pounds of supplies. (It was the inspiration for a killer robot in an episode of the hit Netflix show Black Mirror.)  

The team followed up in 2016 with a leaner version named “Spot” and a two-legged humanoid one named “Atlas.” The latter has been featured in numerous acrobatics videos and has started doing basic tasks in warehouses and factories.   

However, the “brains” of these robots never quite matched the “brawn” of Boston Dynamics’ engineering. For years, robots relied on model-based control. Everything needed to be hand-programmed, limiting their commercial use. Owning Boston Dynamics (and its cash-burning business) turned into a game of hot potato. 

In 2013, Boston Dynamics was acquired by Alphabet Inc. (GOOG), and it was later sold to Japan’s SoftBank Group Corp. (SFTBY) in 2017. SoftBank then resold Boston Dynamics to Hyundai in 2020 to cover losses at its flagship Vision Fund.  

That’s when AI came around. 

Over the past several years, artificial intelligence has given rise to a new field of machine learning. Rather than use explicit equations, modern robots can now use reinforcement learning (a form of AI) to experiment and improve. These systems can even run millions of simulations virtually before taking any action in real life. 

That’s helped Boston Dynamics to produce far smarter devices. Its robots can now be controlled with natural language and gestures, and users can expect them to run autonomously. Its Atlas robots can figure out how to perform acrobatics for themselves. 

This should put Hyundai on an entirely new growth path. As robots become more capable, firms like Boston Dynamics will see soaring demand for their cutting-edge machines. Household chores… handyman services… even minor construction jobs may someday be performed by humanoid robots. Hyundai itself is already testing Boston Dynamics’ humanoid Atlas robots in its factories.  

Hyundai’s second growth area is in electric vehicles (EVs). The company’s Ioniq 5 is virtually tied as the third-most popular EV in America behind Tesla’s Model 3 and Model Y, and reviewers have called it a “sensible and satisfying electric vehicle that doesn’t skimp on personality.” The firm is also a leader in plug-in hybrids and plans to launch a new lineup of extended-range EVs in 2027 that could drive 600 miles or more on a single charge. 

Essentially, Hyundai had far less of a brand to initially protect. It saw EVs as a way to be “first” to a new market and built a dedicated battery electric vehicle (or BEV) architecture before most of its competitors. (Its E-GMP platform is shared with Kia and Genesis.) The South Korean government also offered generous subsidies for Hyundai’s EV efforts, driven by the importance of battery technologies to other Korean firms, such as LG, SK, and Samsung. 

This means Hyundai’s shares remain too cheap. The upside from electric vehicles could drive shares 50% higher… and the success of Boston Dynamics could double the stock. 

Now, it’s important to note that Hyundai is a relatively challenging stock to buy. Its U.S.-traded ADRs (HYMTF) have almost no liquidity, and so investors will need an international trading account that can transact Korean shares. 

Still, those able to invest in Hyundai’s stock will be buying a leading EV maker with incredible upside thanks to its ownership of one of the world’s top robotics firms. 

…  And Sell This Old Timer 

Meanwhile, Toyota Motor Corp. (TM) was once everything that Hyundai is now.

In the 1980s, the Japanese automaker gained recognition as a leader in quality manufacturing, thanks to innovations such as “Kanban” and “Andon.” Individual workers could stop an entire production line if they found any defects. (Meanwhile, Hyundai’s Excels were embarrassingly bad.) 

Toyota was also among the first automakers to invest in alternative energy. The firm began experimenting with hybrids in 1990 and launched its first-generation Prius in 1997. They followed up with hybrid versions of Camrys, Highlanders, and more. 

Additionally, the company leveraged its brand power. Its advertisements in the 2000s heavily featured its STAR Safety System, and its focus on reliability and ruggedness helped propel the Toyota Tacoma to become America’s top-selling midsized pickup. 

That turned Toyota into a high-growth, high-return stock. Between 1985 and 2024, the company saw its U.S. market share surge from 6% to 15%, turning every $100 invested in the company into $2,800. They also dominated international markets like Australia, the Philippines, and South Africa. 

That means Toyota’s shares have traditionally traded at a premium. Its stock has averaged 10.7X forward earnings since 2005, a 50% premium over Hyundai’s shares.  

However, the automaker’s early success is now working against it. 

• Reliability. Toyota’s competitors have now largely caught up. Earlier this year, Subaru overtook Toyota in customer satisfaction rankings for the first time, according to the American Customer Satisfaction Index (ACSI). Toyota now shares second place with Mazda. Hyundai, Honda, and GM are close behind. 
• Innovation. Toyota was hesitant to develop EVs since management feared the new technology would cannibalize hybrid sales. In 2024, its chairman admitted that EVs would create enormous job losses among its suppliers. 
• Profitability. The company’s return on equity has narrowed due to greater competition from both established carmakers like Hyundai and up-and-coming Chinese makers like BYD. Analysts expect returns on equity to fall below 9% this coming year – a departure from its historical 11% average. 
• Valuation. Toyota’s premium valuation now puts shares at risk of a selloff. On a price-to-earnings basis, shares would need to fall at least 20% to bring them in line with their peers. 

That makes Toyota a relatively unattractive bet compared to Hyundai. Though the Japanese automaker won’t disappear any time soon, its days as the world’s undisputed leader are coming to an end. 

Buy This, Not That 

In the early 1980s, Morgan Stanley’s quant team began using a strategy called “pair trading.” Their systems sought out historically correlated stocks and placed bets whenever prices diverged. That would allow Morgan Stanley’s team to profit whenever the “spread” reconverged. 

In other words, if a company like General Motors Co. (GM) rose one day while Ford Motor Co. (F) declined, the system would buy Ford and sell GM, expecting a turnaround. 

Eric’s system takes things one step further.  

By differentiating between attractive and unattractive industries, he’s able to spot trades that pay off over far longer time horizons. 

In fact, years ago, Eric recommended selling construction company Lennar Corp. (LEN) and buying Valero Energy Corp. (VLO) instead. Within three years, Lennar lost half its value while Valero more than tripled. 

Eric provides more details in his presentation here. In total, he reveals seven “Buy This, Not That” trade ideas for the Age of Chaos, offering viewers exciting alternatives to today’s most overrated stocks.  

Click here for all the details.

Until next week, 

Tom Yeung 

ÃÛÌÒ´«Ã½ Analyst, InvestorPlace 

Thomas Yeung is a market analyst and portfolio manager of the Omnia Portfolio, the highest-tier subscription at InvestorPlace. He is the former editor of Tom Yeung’s Profit & Protection, a free e-letter about investing to profit in good times and protecting gains during the bad.

The post Your Weekend Shortcut: One Stock to Buy, One to Sell Immediately  appeared first on InvestorPlace.

Record revenue of $57.0 billion, +22% quarter-over-quarter (QoQ) and +62% year-over-year (YoY)…

And record data center revenue of $51.2 billion, +25% QoQ and +66% (YoY).

Plus, CEO Jensen Huang couldn’t have been more enthusiastic during the company’s quarterly call. 

“Blackwell sales are off the charts, and cloud GPUs are sold out… Compute demand keeps accelerating and compounding across training and inference – each growing exponentially. We’ve entered the virtuous cycle of AI. The AI ecosystem is scaling fast – with more new foundation model makers, more AI startups, across more industries, and in more countries. AI is going everywhere, doing everything, all at once.”

Initially, the Street reacted positively to this blockbuster report – but that enthusiasm was quickly replaced by investors’ overwhelming skepticism. 

After a few short hours of gains, stocks sold off sharply – and they’ve largely been floundering ever since… especially AI stocks.

So, let’s unpack Wall Street’s freakout, shedding light on why some of those worries are real – but manageable – and, most importantly, why we still think this is a buy-the-fear moment for AI stocks…

Nvidia’s Quarter: Record-Breaking Results Across the Board

First, the facts – for its fiscal Q3 2026, Nvidia reported:

• Revenue: $57.0 billion, up 22% QoQ and 62% YoY
• Data center revenue: $51.2 billion, up 25% QoQ and 66% YoY 
• GAAP EPS: $1.30, up 67% from a year ago 
• Gross margin: mid-70s, still absurdly high for a hardware company 
• Q4 guidance: $65 billion in revenue, plus or minus 2% – another big sequential step-up 

On top of that, the balance sheet is immense:

• Operating cash flow: $23.8 billion this quarter, up from $17.6 billion a year ago 
• Accounts receivable: $33.4 billion with 53 days sales outstanding, actually down from 54 days last quarter 
• Inventory: $19.8 billion, up from $15.0 billion last quarter, as the firm stocks up for Blackwell and future architectures
• Supply commitments: $50.3 billion
• Multi-year cloud service agreements: $26.0 billion, up from $12.6 billion in just one quarter 

These colossal numbers don’t reflect a ‘bubble stock’ trying to hold it together but, rather, one of the best growth-and-profit stories in market history.

So, then, why did the broader AI trade wobble? And why are traders suddenly doom-posting about circular financing and accounts receivable blowups?

We see three main reasons…

Why Wall Street Sold the News on Nvidia’s Earnings

Expectations Were In the Stratosphere

Nvidia is no longer just another earnings report. It’s the heartbeat of the entire AI trade.

The stock has exploded over the past three years. And investors came into this quarter with one implicit assumption: ‘Show me perfection… or else.’

After that kind of run, even a great quarter can turn into a “sell the news” event. 

Options were pricing in a big move. AI bubble narratives were already swirling. Nvidia basically had to beat, raise, and also make everyone feel safe about the next three to five years of AI capex in a single call. 

That’s a nearly impossible bar.

The ‘Cisco Moment’ Fear Explained – and Why It’s Overblown

This is the part you’re seeing all over X:

• Accounts receivable jumped, leading bears to believe the company is ‘booking fake growth’ by letting customers pay later.
• Inventory rose to almost $20 billion.
  Bears: ‘If GPUs are ‘sold out for years,’ why is inventory piling up?’
• Cloud commitments doubled to $26 billion, fueling fears about circular financing.
  Bears: ‘Nvidia commits to buy cloud capacity from customers, customers buy more GPUs from Nvidia, and everyone pretends it’s organic demand.’ 

Layer on top of that huge supply commitments with foundries and suppliers and very concentrated revenue in a handful of hyperscalers and AI clouds – and you get a neat bearish story: “This isn’t real, broad-based demand. This is a small group of U.S. hyperscalers overbuilding AI capacity, helped along by Nvidia’s own balance sheet. When the music stops, so does Nvidia’s growth.”

That narrative hits an emotional nerve, especially for investors who remember the ‘Cisco moment’ of the dot-com era. Cisco Systems (CSCO) seemed like the indispensable backbone of the internet boom, trading at impossible multiples… until enterprise spending froze, and the stock lost nearly 90% from its 2000 peak. 

With Nvidia, bears see a similar setup today: an essential supplier riding a technology revolution whose customers might soon overbuild and then pull back.

Macro Pressures Add to AI Capex Concerns

Not to mention, the macro overlay has many people worried.

AI capex is running at a massive annualized clip, with Big Tech projected to spend approximately $400- to $405 billion in 2025. And the Federal Reserve is still in tightening/QT mode.

That has skeptics asking the same question over and over: “Are we really getting enough ROI from all these GPUs to justify the spend?”

So, when they see rising AR, inventory, and multi-year commitments, they mentally connect the dots to ‘overbuild’ and ‘capex hangover’ – even if the income statement and cash flow statement still look flawless today.

Why Nvidia’s Fundamentals Still Signal Strength

Now, let’s be fair; the bears are not crazy. There are some valid concerns and real risks here:

So, yes – there is real cyclicality risk in the AI infrastructure build-out. This is not a risk-free straight line.

But that’s also where the bear case starts to overshoot.

The Panic Is Overdone

First, so far, the AR scare is mostly a nothingburger. 

AR is high in absolute terms – but so is revenue. And Days Sales Outstanding sit at 53 days – actually better than last quarter’s 54. 

If Nvidia were juicing numbers by shoving product out the door on crazy terms, you’d expect AR to grow much faster than revenue and DSO to spike higher.

Instead, revenue is up 62% YoY, DSO is flat-to-down, and operating cash flow hit $23.8 billion in the quarter. 

That’s not what ‘fake growth’ usually looks like.

Second, the inventory spike is explainable – even logical – in the context of Blackwell.

Management explicitly says they’re ordering ahead to secure long lead-time components and support the Blackwell ramp and future architectures. 

In other words, they see so much demand coming that they’d rather eat the working capital today than lose share or miss orders tomorrow.

Could that prove too aggressive if demand slows? Absolutely. But it’s also exactly what you’d want a dominant supplier to do when it keeps telling you ‘cloud GPUs are sold out’ and the backlog is enormous.

Third, the ‘circular financing’ story ignores the other side of the equation: AI is already driving real revenue for Nvidia’s customers.

• Meta (META) credits AI recommendation and ad tools for its revenue re-acceleration and strong margins.
• Alphabet (GOOGL) just posted its first $100-billion quarter and is ramping AI-related capex because search, YouTube, and cloud are monetizing AI features.

The hyperscalers doing the bulk of the spending are already increasing engagement, improving ad performance, lowering compute costs with more efficient AI stacks, selling more software, etc. 

That doesn’t mean there won’t be overbuild at the margin. There always is. But it does mean this isn’t some empty, revenue-less, fiber-optic bubble.

The Big Picture: The AI Boom Is Just Evolving

Let’s step back from the quarter and look at the trajectory.

Earlier this year, Nvidia’s revenue growth had been slowing. Now it’s reaccelerating – 56% YoY in Q2, 62% YoY in Q3. And management just pointed to another big step-up for Q4. 

Data center – the heart of the AI story – is compounding even faster at +66% YoY.

If this were truly the ‘top’ of an AI bubble, you’d expect:

• Growth decelerating sharply
• Guidance rolling over
• Customers quietly pausing capex

But we’re seeing the opposite.

What is happening is that the market is shifting from AI euphoria to AI underwriting.

Early in this boom, it was like businesses got paid just for saying ‘AI’ in a press release. 

But here in late 2025, investors are finally asking companies to show them the cash flows, the balance sheet discipline – and that it’s more than just financial engineering. 

That’s healthy. It’s exactly what needs to happen for the AI trade to evolve from speculative mania into a long, durable bull market.

Investor Playbook: Turn Fear Into Opportunity

Our take here is pretty simple.

Yes, Nvidia and the AI complex have real risks – customer concentration, capex cycles, the potential for overbuild.

Yes, some smaller AI clouds and second-tier players will blow up or get acquired when the cycle turns.

But no, this quarter doesn’t support the idea that AI was a ‘mirage.’

The income statement, cash flow, and guidance all suggest the same thing: the AI Boom is still very much alive. 

We are in the middle of a massive capex and productivity cycle, not the bitter end of a bubble. For investors, that means we can:

• Use the fear around AR, inventory, and circular financing as an opportunity – not an exit signal.
• Focus on high-quality AI infrastructure names (chips, networking, storage, power) and the big software/cloud platforms that are already monetizing AI in their profit & loss statements.
• Treat this phase as what it is: A transition from ‘AI hype trade’ to ‘AI cash-flow trade.’

When the market starts obsessing over bookkeeping details in the middle of 60%-plus revenue growth and record cash flow, it’s usually not the end of a boom. More often than not, it’s the buyable wobble before the next leg higher.

In fact, we see this as the makings of one of the best buying opportunities the AI Boom has offered thus far.

We don’t catch falling knives, of course. But we do prepare our buy list so we can pounce when technical support arrives. And there’s one stock in particular we think could go vertical when these market tides shift.

It’s one with the potential to upend a $1.9 trillion industry – and mint millionaires along the way.

Find out the name of the stock we see as the ‘next Amazon.’

The post Nvidia Earnings Smash Records, but Wall Street Panics Anyway appeared first on InvestorPlace.

Travelers, prepare yourselves…

The busiest travel days of the year loom ahead of us.

Road travel annually peaks on the Wednesday before Thanksgiving, while air travel increases significantly the Sunday after. Recent years have seen record-breaking passenger numbers on this particular weekend day.

If you are taking the skies in homeward-bound travel next week, I want you to do something: Count how many weary travelers swarm to Starbucks for “airport-priced” $9 lattes. Does the number ever decrease?

Or check out the queue for the first-class Admirals Lounge. Does it snake out the door?

When you walk through any airport this holiday season, you’ll see plenty of signs of affluence that don’t seem to align with the “struggling consumer” narrative.

But step into a Dollar General, or any discount grocery in a middle-class zip code, and the consumer struggles become more visible. Carts brim with house brand products, store specials, and “buy one, get one” bargains.

This is the defining feature of late-2025 America: an economy with two heartbeats.

One is pulsing with stock-market wealth and travel points, the other murmuring under credit strain and job anxiety.

The U.S. economy is growing top-heavy, as wealthy households shoulder more of the load. That imbalance might drop a banana peel in the stock market’s path.

No reason to panic just yet, but ample reason to prepare.

So, in today’s Smart Money, let’s take a closer look at this economic split personality… and the new challenges and considerations it presents for investors.

The Tale of Two Wallets

The latest economic data bring this “tale of two wallets” into high relief.

The Boston Federal Reserve finds that America’s wealthiest 10% now account for about half of all consumer spending – the highest on record. That means the economy increasingly depends on the shopping habits of a small, asset-rich cohort.

Interestingly, the spending mood of the wealthy springs directly from the “mood” of the stock market. In an October 2025 report from the Bank of America Institute, titled Consumer Checkpoint: The Tale of Two Wallets, the institute showed that discretionary card-spending growth for the wealthiest U.S. households correlates strongly with year-over-year gains in the S&P 500 (three-month moving average).

Rising stock prices are just one example of the “fun” kind of inflation that delights affluent households. On the other hand, middle- and lower-income households rarely enjoy the fun kind of inflation, only the un-fun kind.

For them, inflation arrives as a relentless series of small hits: higher rent, pricier groceries, climbing energy bills, and interest costs that eat into every paycheck. There is little offset from asset gains, and everyday spending feels like a constant squeeze.

According to official figures, nationwide food costs are about 35% higher than they were four years ago, which means a shopping cart full of groceries that cost about $130 in 2021 now costs about $200.

That hurts, especially if food, rent, and car payments consume nearly all of the household budget.

In the face of these price pressures, the affluent can afford to shrug. The rest “trade down” where they can or swipe credit cards.

Growing job insecurity is adding to these stressors. Low-skill jobs are facing the strongest headwinds, but white-collar jobs are not escaping the purge. United Parcel Service Inc. (UPS), for example, has slashed 48,000 jobs so far this year, 14,000 of which were management-level positions.

What makes this round of job losses feel different, and somewhat ominous, is the sense that many of these jobs aren’t “coming back later.” They’re stepping into an incinerator.

Here’s what I mean…

AI Gains Versus Pink-Slip Pains

Amazon.com Inc. (AMZN) openly says it has already replaced 14,000 human roles with robots, and IBM Corp. (IBM) has paused or cut back-office hiring because many tasks “can be replaced by AI.”

The announcements from Amazon and IBM are but two small pieces of a frightening mosaic. The World Economic Forumsees 14 million net jobs disappearing by 2027 as AI and automation infiltrate the workplace, while Goldman Sachs predicts the tally of at-risk jobs globally could soar to 300 million by the end of the decade.

That doesn’t mean a jobless future, but it does mean a permanent regrading of who works where, with fewer entry-level and mid-skill slots in the corporate middle.

The AI investment boom is another force that’s powering the growing divide between rich and poor. As data centers spring up like dandelions across the country, tech companies will spend trillions, literally, to construct, equip, network, and power these AI “brains.”

McKinsey & Co. estimates that data center investment will total a massive $6.7 trillion during the next five years – of which $5.2 trillion will be for AI-specific infrastructure. Those trillions will come from the same cash-rich corporations that are busy shedding employees and replacing some of them with robots or other AI systems.

To be sure, these massive investments will generate a lot of economic stimulus, but it will accrue narrowly to capital owners, not to bartenders and baristas.

The GDP may look OK, but the paycheck distribution doesn’t.

So, what does all of this mean?

How to Allocate Your Investments Wisely

The “Two Americas” may share the same checkout line and the same job market, but they don’t share the same footing.

As I mentioned, this economic split presents new challenges and considerations for investors.

1. No matter how much money the wealthy may spend, they cannot singlehandedly sustain the entire economy indefinitely, nor even the specific industries that cater to them – like travel and tourism, high-end apparel, and luxury goods.

2. If most Americans are tightening their belts, the vast majority of industries could struggle to make the marginal sales that would power earnings growth. Simply running in place would feel like a victory.

3. The long-term growth projections that support today’s trillion-dollar data center investments might ratchet lower, as theory collides with practice.

In that event, the universe of richly valued tech stocks – including trillion-dollar titans like Amazonand Tesla Inc. (TSLA) – might hit a downdraft.

These risks do not demand panic-selling of tech stocks, or a full-scale retreat into cash, but they do demand a fresh and candid look at our portfolio allocations.

The cautious investor might want to lighten up on the companies with heavy exposure to stretched households. That group would include industries like mass-market restaurants, discretionary retail, subprime credit, and auto finance.

Trimming positions in high-flying AI stocks might also be a prudent course of action. Because many of these stocks are “priced for perfection,” even small doses of bad news can cause outsized selloffs.

I’m not preaching doom and gloom, just suggesting a partial shift away from the sectors that seem most vulnerable to disappointment.

On the flipside, I suggest a partial shift toward the sectors and companies that possess defensive qualities or underappreciated growth potential… even if the consumer fails to show up.

I reveal three such recommendations in this special presentation. These are under-the-radar, early opportunities that could multiply your money in the coming months thanks to their ability to adapt.

Click here to learn their names, free of charge.

Regards,

Eric Fry

The post The ÃÛÌÒ´«Ã½ Now Runs on Two Engines — and Only One Is Built to Last appeared first on InvestorPlace.

Was it all much ado about nothing?

On Wednesday after market close, I sat in a room with Eric Fry, Luke Lango, and Louis Navellier. Normally, when we are all together, the room is filled with talking (sometimes everyone is talking at the same time).

But on Wednesday, we were all looking at our phones and waiting for one thing.

Nvidia Inc.’s (NVDA) earnings report.

What is normally a routine event had suddenly become the most important data point of the year.

The market has been increasingly wobbly this week as sentiment has started to question whether the AI trade is over-extended.

Everyone in the room thought Nvidia’s earnings would at least be good, and maybe great. But we all wanted to hear the news.

As we were chatting, I checked my computer at 4:30 and there it was –  Nvidia’s earnings and guidance had exceeded Wall Street expectations. It felt like the market could let out a sigh, and the bull market could recommence.

The feeling of relief reminded me of the final days of 1999, when people stocked pantries with canned goods, unplugged their electronics, withdrew piles of cash, and braced for the Y2K apocalypse that never came.

For those too young to remember, the Y2K bug was a potential computer problem caused by a programming shortcut in which two digits were used to represent the year (e.g., “99” for 1999) to conserve memory.

As the year 2000 approached, some people predicted that computers would incorrectly interpret “00” as 1900 instead of 2000, potentially leading to failures in critical systems such as banking, utilities, and transportation. 

According to a report from a Senate Special Committee on the Year 2000 Technology Problem, the federal government spent approximately $8 billion to prepare for the potential disaster.

Then, at midnight on December 31, nothing happened. Quite literally … nothing.

Everything worked just fine. No planes fell out of the sky. The banks still had all your accounts available. The electricity stayed on.

The world blinked, realized everything still worked – and exhaled.

I was ready to make a comparison today in a piece about investor psychology.

Not so fast.

When are outstanding earnings not enough?

Both NVDA and the broader market seemed to feel the relief from the earnings announcement and started the day hot.

But the market turned mid-morning. The S&P finished the day down 1.5% with Nvidia down more than 3%.

Why the violent reaction?

It feels unwarranted – not only relative to Nvidia’s blowout earnings, but also to the outstanding earnings season that we have just completed.

According to FactSet, the blended net profit margin for the S&P 500 for Q3 2025 is 13.1%, which is above the previous quarter’s net profit margin, above the year-ago net profit margin, and above the 5-year average.

It’s the highest net profit margin in 15 years.

In any other year, a 13.1% net profit margin would have sent markets roaring higher. Instead, it barely bought the market two hours of relief. That disconnect is the story – and why investors felt blindsided

So, what’s going on? Let’s get the expert takes.

In a message to his Growth Investor readers, Louis blamed a constant barrage of attacks from short sellers criticizing circular financing. He flatly rejects their criticism.

The tech industry has always done this [type of financing]. So this is nothing new. And this is how companies maintain monopolies by making alliances and eliminating competition and all that good stuff.

Bloomberg reported on Thursday that NVIDIA’s receivables have risen 89% and are outpacing their sales growth of 62%. So, the fact that receivables are outpacing sales is insinuating that the people buying the Nvidia chips may not be able to afford them.

This is a bogus argument; it’s a receivable. Nvidia is not going to sell chips to people if they don’t get paid. And it’s the most bizarre argument.

So I think this is most unfortunate, but markets react. They don’t think.

Louis believes AI is entering a new growth phase where it won’t just improve productivity – it becomes the engine of productivity.

That’s the foundation of what he calls the Economic Singularity – a period when AI-driven output, innovation and infrastructure begin compounding together and reshaping our entire economy.

The biggest winners of the Economic Singularity won’t just be the obvious AI giants. They’ll be the companies building the essential systems, software and infrastructure behind the entire AI Revolution.

Click here to learn more.

Where there is smoke…?

Luke, our technology investing expert, agrees broadly with Louis’ take. He believes several factors are converging, causing the violent reaction.

Over the last few months, Big Tech has increasingly tapped debt markets to fund its AI expansion. That shift from cash-financing to partially debt-financing introduces risk — because you can default on debt, but you cannot default on cash.

Meanwhile, we’ve seen a series of funky-but-not-necessarily-bad financing dynamics crop up: circular financing loops between OpenAI, Nvidia, AMD, and Anthropic… Sam Altman floating the idea of U.S. government loan guarantees… Michael Burry ranting about GPU depreciation schedules… and now Nvidia’s earnings showing a >50% jump in accounts receivable.

None of this is inherently problematic. But all of it happening at once? It creates smoke — and the market reflexively searches for fire.

Luke reminded his Innovation Investor readers that most of the AI boom is still financed with cash. As for Nvidia, Luke believes the real headline is that the leading chip maker has just posted its first revenue growth acceleration since late 2023, with faster growth projected for the next quarter.

Luke is tracking a new facet of the AI wealth cycle that’s minting millionaires faster than any tech boom in history.

That’s why he recently traveled to Silicon Valley to unveil the “Hyperscale Revolution,” all about the digital-first companies using AI to scale without factories, inventory, or limits.

And he highlights one small, overlooked stock that could become the next Amazon… in a completely unexpected sector.

Watch his latest briefing and see how to position yourself.

If you’re looking for alternatives

For a contrary view, global macro investing expert Eric Fry was ready with a hard dose of market reality.

Nvidia’s numbers weren’t just good, they were fantastic! Revenue, profits, guidance… all exceeded what Wall Street had modeled.

What does it mean when perfect is no longer good enough?

In his Smart Money column, Eric argues that NVDA’s earnings didn’t silence the bearish narrative… they validated it. A market that can’t celebrate excellence is a market priced for perfection. And perfection is impossible to sustain — even for Nvidia.

In Eric’s view, investors aren’t wrong to believe in AI. They’re wrong to believe it can justify endlessly rising stock prices without interruption. Nvidia’s quarter didn’t end the doubt. It amplified it.

Here is Eric’s take for where investors should be looking instead.

While everyone obsesses over Nvidia and its AI chips, they’re missing the one component that makes everything work. Without it, even the most powerful AI chip is just expensive silicon.

At Fry’s Investment Report, I’ve been following a particular under-the-radar company that makes this vital component in AI data centers, allowing servers to communicate and learn from each other.

While Nvidia is up over 30% year-to-date, this company more than doubled that gain with a year-to-date climb of nearly 70%. And it’s currently up 110% since I recommended it to the paid members of Fry’s Investment Report.

You can click here to learn how to access Eric’s “Sell This, Buy That” recommendations.

During times of market turmoil, it’s essential to maintain a long-term perspective. Stocks have provided outstanding gains over the last century.

ÃÛÌÒ´«Ã½ volatility isn’t a sign the bull market is over. It’s the price of admission.

Enjoy your weekend,

Luis Hernandez

Editor in Chief, InvestorPlace

The post Nvidia Delivered. Why Did the ÃÛÌÒ´«Ã½ Panic Anyway? appeared first on InvestorPlace.

But I’ve been warning my subscribers about the hidden dangers lurking in the private credit market for practically the entire year.

Yet, for most of 2025, the mainstream financial media coverage of this topic has been practically nonexistent.

That all changed last week, when a major lender tried to merge two of its private-credit funds, nearly triggering a run on the whole industry. Investors were facing losses of almost 20%, and the firm had to freeze redemptions.

That’s how panics start, folks.

The good news is that the merger was called off, and the immediate chaos is cooling down. But this little scare showed us something important: The weak spots in our economy are not where most people think. They’re not in the big AI build-out or the cloud giants spending billions on new data centers. The trouble lies in the old credit system –  the same over-leveraged pockets that have failed repeatedly.

Jamie Dimon at JPMorgan said it best: “When you see one cockroach, there are probably more.”

So, in today’s ÃÛÌÒ´«Ã½ 360, I’ll break down the credit risks building under the surface, explain why they point to a much bigger shift in the market and where I believe investors need to be moving now to stay on the right side of it.

What Private Credit Really Is – And Why It Grew So Fast

Before we go any further, let me explain what private credit actually is.

Private credit is simple. It’s lending that happens outside the traditional banking system. These aren’t loans from JPMorgan or Bank of America. They’re loans made by non-bank lenders – asset managers, private funds, insurance companies and giant investment firms.

In other words, this is Wall Street’s version of “shadow banking.”

Now, why did it grow so fast?

After the 2008 financial crisis, regulators clamped down on the big banks. The new Dodd-Frank rules forced banks to hold more capital, reduce risk and cut back on certain types of lending. Banks could no longer make the same aggressive loans they used to make to small businesses, weaker companies or higher-risk borrowers.

But the demand for loans didn’t disappear. It just shifted. Private credit funds stepped in and said, “We’ll do it.”

And the money poured in. Private credit grew from about $300 billion in 2010 to almost $3 trillion today. That’s a tenfold increase in a little over a decade.

Investors loved it, because private credit promised something most people couldn’t get anywhere else: high yields, stable income and less day-to-day volatility.

For a long time, that pitch worked. Pension funds loved it. Endowments loved it. Family offices loved it. Even wealthy individuals piled in.

Access was limited. Regular investors usually couldn’t get these deals because many private-credit funds were closed to the public. They were sold to institutions and accredited investors.

And that exclusivity created the illusion of safety. If only the “smart money” could get in, then it must be safe… right?

Well, not always.

Let’s remember that private credit often lends to subprime auto lenders, distressed companies, businesses with thin margins… Borrowers who can’t qualify for traditional financing.

These loans work fine in a strong, growing economy. They break when things start slowing down.

And that’s exactly what we saw last week.

The “Cockroaches” Start to Appear

The story that finally grabbed the headlines was the Blue Owl scare.

Blue Owl Capital Inc. (OWL) is one of the largest private-credit managers in the world, with funds that lend money to businesses outside the traditional banking system.

Last week, the firm tried to merge one of its non-traded private credit funds into a larger, publicly traded one. Because the larger fund trades at a steep discount, investors in the smaller fund were looking at almost a 20% loss the moment the deal closed. To push the merger through, Blue Owl had to freeze redemptions. Investors couldn’t pull their money out.

That’s the kind of move that shakes confidence. Private-credit funds are sold as stable, income-oriented investments. They’re not supposed to lock you out or force you into losses.

But here’s the important part: The Blue Owl episode was not the first warning. It was simply the first one the financial media couldn’t ignore.

The earlier signs were already there.

One of the first cracks showed up months ago when Tricolor – a subprime auto lender in Texas – collapsed. That bankruptcy forced JPMorgan to write off $170 million and raise its loan-loss reserves to the highest level in five years.

Then another troubled borrower, an auto parts maker called First Brands, failed. That pushed more stress into parts of the private-credit system tied to autos and consumer lending. Some analysts may have brushed it off, but a pattern was clearly forming.

Next, a handful of regional banks increased their loan-loss reserves. For several of them, reserves were at the highest levels in three years.

These were all early signals – the kind that credit analysts pay attention to long before the public hears anything.

And that’s exactly what the Blue Owl scare showed the world. It wasn’t the beginning of the problem. It was the moment when people started to get genuinely concerned.

But the twist is that the stress isn’t evenly spread across private credit. Only certain corners are breaking – the same old, over-leveraged pockets that have failed in past cycles.

And that brings us to an important point… not all private credit is the problem.

Why Bad Credit Is the Problem

This is a good time to mention that I worked in the banking industry as an analyst in the late 1970s and early 1980s. That experience shaped how I look at credit today.

I watched troubled banks merge, repackage their bad loans and push problems into the future just to qualify for FDIC and FSLIC insurance. And after seeing how those deals worked firsthand, I’ve never fully trusted the numbers.

Bank accounting is still a strange world, and that’s one of the reasons I stay away from financials in my premium services.

The point is, when I warned my followers about the private credit market, it’s because I’ve lived through this movie before.

After a week of scary headlines, it’s easy to think the entire private-credit world is falling apart. It’s not. The cracks we’re seeing are concentrated in the same places that always fail first – subprime borrowers, stretched consumers and businesses that were already on thin ice.

But other parts of private credit are not only stable – they’re thriving.

One of the strongest trends in the entire economy right now is the rapid expansion of AI data centers. These facilities are expensive, and the big cloud companies can’t build them fast enough. A large part of that build-out is being funded by private credit.

These are not risky loans. They’re backed by real demand, long-term contracts and the fastest-growing technological revolution the world has ever seen: artificial intelligence.

Where Investors Should Go Next

This is important for investors to understand. Some of the private credit market is weak. Some of it is very strong. And the divide between the two tracks almost perfectly with what I’ve been talking about all year – the split between the old economy and the new one.

The old economy runs on credit to consumers, autos and legacy industries that lack the growth or pricing power to keep up with rising costs. That’s where the failures started. That’s where the cockroaches showed up.

The new economy runs on cloud computing, AI, robotics and automation. These are sectors with strong growth, robust margins and strong demand from customers worldwide. When companies in these sectors borrow, they borrow for expansion – not survival.

That’s the split I want you to pay attention to. Capital is already moving toward the strongest parts of the market. Earnings are following. And over time, stock prices will, too.

In my view, the best opportunities in this environment will come from owning the companies at the center of the biggest technological shift of our lifetime.

Other companies will be relegated to the dustbin of history as we reach what I call the Economic Singularity.

I’ve been studying this transformation all year, and I recently highlighted the seven companies I believe are best positioned to lead the next major wave of growth. If you want to stay on the right side of this divide – and avoid the weak corners that keep cracking – I encourage you to watch my latest presentation.

So, if you want to understand what’s really driving the unprecedented changes in our economy, go here to watch it now.

Sincerely,

Louis Navellier

Editor, ÃÛÌÒ´«Ã½ 360

The post The Cracks Emerging in a $3 Trillion ÃÛÌÒ´«Ã½ – And What We Can Learn From It appeared first on InvestorPlace.

If you’ve ever heard older folks talk about the way the housing market was ‘back in their day,’ it probably sounded more like fiction than fact. I’ll never forget how bewildered I felt when my grandmother told me her first house cost $11,000…

At that time – in the early 1950s – the average home price was around $8,000, while average household income was about $4,000 per year. In other words, the price-to-income ratio back then was about 2:1 – far and away from today’s reality, estimated between 4- and 5X income.

By almost every measure, affordability is at all-time lows…

Unfortunately, supply is stuck near record lows as well. As of July 2025, America’s housing shortage has grown to an all-time high of 4.7 million units, according to research from Zillow.

Younger people can’t afford to buy. Older homeowners aren’t selling. New construction hasn’t kept up with demand. The result? The worst housing crisis in modern U.S. history. 

But the White House may be gearing up to do something about it.

Back in early September, Treasury Secretary Scott Bessent hinted that the administration could declare a National Housing Emergency this fall. He didn’t share details at the time, but make no mistake: Washington has plenty of levers it could pull to reset this market. 

We’re talking tariff and material-cost relief, incentives and grants for first-time buyers, down-payment assistance, streamlined permitting, changes in housing finance, even the use of federal land for new development.

If that happens, the market will thaw; and housing stocks could fly… 

Meaning this is a prime time to start accumulating housing-related names.

How the Housing Crisis Reached a Breaking Point

To understand why a policy shock could matter so much, you need to understand just how broken things are.

Over the past four decades, the U.S. housing market was defined by one structural tailwind: falling mortgage rates. From the early 1980s until the early 2020s, 30-year mortgage rates trended down, enabling buyers to afford higher home prices while keeping monthly payments manageable.

That all changed in 2022.

Between early 2022 and late 2023, mortgage rates spiked from 3% to 8%. That’s a 500-basis-point move – the steepest increase on record, with data going back to 1990. And rates haven’t really come down since. The average 30-year mortgage has largely hovered between 6- and 7% for two years now.

And the impact on demand has been devastating. Zillow data shows that U.S. households are now spending an average of more than 35% of their yearly income on mortgage payments for a new home, compared to less than 25% just a few years ago. Anything above 30% is considered “unaffordable.” 

Bloomberg estimates that you need nearly $120,000 in annual income to afford the average home today. But the median U.S. household income? About $80,000. That math simply doesn’t work.

Of course, these high rates didn’t just destroy demand. They froze supply, too.

Anyone who bought a home in the last 25 years almost certainly locked in a mortgage rate well below today’s market. Unsurprisingly, casual sellers have vanished… because why would you trade a 3% loan for a 7% one? The only people putting homes on the market are those who have to move. On top of that, elevated borrowing costs have made building new homes more expensive, choking off fresh supply.

So, here we are: low demand, low supply, sticky-high prices, and affordability in the gutter.

The Fed Can’t Fix Housing Alone

Now, rate cuts could help, and the Federal Reserve has started down that road. But let’s be realistic: this market is too broken for monetary policy alone to fix. It will take a policy sledgehammer.

That’s where the White House comes in.

If the administration does move forward with a National Housing Emergency, it has several levers it can pull, many of which could have fast, tangible impacts:

• Tariff and material cost relief. Reducing tariffs or granting exemptions on imported lumber, steel, or other key building materials could immediately lower construction costs.
• First-time buyer support. Grants, down-payment assistance, or expanded Federal Housing Administration (FHA) benefits would directly ease affordability challenges.
• Regulatory streamlining. Federal guidance could push localities to accelerate permitting timelines, especially on multifamily and affordable housing projects.
• Mortgage finance tweaks. Agencies like the Federal Housing Finance Agency (FHFA) and Department of Housing and Urban Development (HUD) could cut fees or loosen restrictions, while Fannie Mae and Freddie Mac could be nudged toward more flexible underwriting or targeted affordable housing initiatives.
  • We’d be remiss if we didn’t note one idea that’s also surfaced, floated recently by President Trump – the creation of a 50-year mortgage. But, in our view, that fix appears cosmetic at best and unlikely to meaningfully stimulate the housing market. An analysis by UBS found the cons would outweigh the pros: compared with a 30-year mortgage, a 50-year loan would only lower payments on a typical home by 5.4%, while saddling borrowers with roughly 225% of the total home price in interest. In other words, it stretches the affordability problem instead of solving it.
• Use of federal land. Large swaths of federally owned land could be opened to housing development, particularly in areas where zoning and local politics have created bottlenecks.

Individually, none of these measures would fix the housing market. But combined, they could meaningfully boost both supply and demand within a year. And that’s the sort of synchronized intervention that could trigger a housing boom unlike anything we’ve seen since the post-financial-crisis rebound nearly two decades ago.

The Stock ÃÛÌÒ´«Ã½ Angle: Housing Stocks That Could Soar

If the White House pulls any of those levers, housing-related stocks could rip.

We see the obvious trade in homebuilders. 

Lennar (LEN), PulteGroup (PHM), DR Horton (DHI), KB Home (KBH), NVR (NVR), Toll Brothers (TOL), Meritage Homes (MTH), Green Brick Partners (GRBK) – these are the blue chips of America’s housing construction industry. They’ll benefit directly from any boost in demand, lower material costs, or faster permitting timelines. Their order books will swell, their margins will expand, and their earnings will jump.

But here’s where I’d go a step further: the real upside lies in housing tech.

• Zillow (Z): The closest thing we have to a digital super-app for housing. If more buyers flood the market, Zillow becomes the go-to platform, especially for millennials and Gen Z.
• Opendoor (OPEN): The iBuying model thrives in higher-volume markets. If Washington can thaw out supply, Opendoor’s algorithm-driven instant offers will look increasingly attractive to sellers.
• Compass (COMP): A tech-first brokerage that could win market share as agents flock to platforms offering better digital tools.
• Rocket Mortgage (RKT): A policy-driven housing boom paired with falling mortgage rates could unleash a massive refi wave. And Rocket dominates that space; perhaps the biggest winner of them all.

These are structural disruptors poised to gain share as housing transactions migrate online. And a National Housing Emergency could be the catalyst that accelerates that shift.

Why Investors Need to Position for Housing Now

Housing affordability is becoming a generational issue, and it’s climbing the policy agenda.

The administration is looking for wins heading into 2026. And unlike many avenues, housing intervention has the potential to deliver visible, near-term relief to millions of families.

And since markets are forward-looking, if the White House even hints at a concrete emergency package, housing stocks could gap higher overnight. 

Waiting until the details are out will mean missing much of the move. That’s why now is the moment to start building exposure. Whether through the builders or the tech disruptors – or both – investors who position ahead of a National Housing Emergency declaration could be looking at one of the strongest tailwinds of the next 12 months.

And we think it could arrive any day now. If so, the combined impact of lower material costs, more federal land, easier mortgages, and support for first-time buyers could trigger a boom unlike anything we’ve seen since the 2008 financial crisis.

The builders will benefit. But the real asymmetric upside lies in the housing tech stack – names like Zillow, Opendoor, Compass, and Rocket Mortgage.

We face the worst affordability crunch in modern history. That’s the problem. The opportunity? When the policy hammer falls, the rebound could mint fortunes. 

And while most investors watch the Fed, the real disruption is forming elsewhere. 

A $1.9 trillion market – frozen for years – is about to thaw. And one company’s algorithmic supremacy may be the key that unlocks it.

Find out more about the innovator that could deliver 1,000%-plus gains as it fixes a broken system.

The post The Fed Can’t Fix U.S. Housing; But the White House Might appeared first on InvestorPlace.

Nvidia crushed expectations as its growth re-accelerated for the first time in six quarters. Meanwhile, management guided for even faster growth ahead. Despite this, Thursday’s post-earnings rally fizzled, and the market closed lower as fear once again took the wheel.

But here’s the real story from Luke Lango, InvestorPlace Senior Analyst and editor of Innovation Investor:

The selloff didn’t disprove the AI boom — Nvidia’s numbers proved it’s accelerating.

In today’s Friday Digest takeover, Luke walks us through:

• Why Nvidia’s results were a direct rebuttal to the “AI bubble” narrative
• How hyperscalers are still sold out of GPU capacity
• Why the entire AI infrastructure stack – from chips, to power, to storage, to robotics – just got a green light for its next major leg higher
• Which stocks are best positioned to ride this boom

By the way, if you’re on the run, Luke recorded a short special briefing video to walk you through everything and explain why this moment matters more than any single earnings report.

And be sure to check back next week – he’ll have more to share on how you can profit.

Enough intro. Here’s Luke…

Have a good evening,

Jeff Remsburg

For the past several weeks, fears about an ‘AI bubble’ have been hammering AI stocks. 

Big Tech’s soaring capex has traders worried that firms are overspending only to underdeliver – and that’s been weighing heavily on the AI trade. 

This is illustrated by the Global X Artificial Intelligence & Technology ETF (AIQ) – a strong proxy for the industry – which has been on a downward slope since late October.

That slump mirrored fading confidence in AI demand – until Nvidia (NVDA) changed the tone [Wednesday] night… and resuscitated the AI stock rally. 

The tech titan delivered a monster third-quarter earnings report – with even more monstrous guidance for Q4; the sum of which confirms that the AI frenzy is speeding up, not slowing down. 

Revenues rose 62% in Q3 and are expected to rise 65% next quarter. This is the first time since late 2023 that Nvidia’s sales growth rate has re-accelerated in two consecutive quarters.

After six straight quarters of slowing growth, the AI plumbing just hit the gas again – and the numbers tell the story…

Nvidia Earnings Overview: The AI Engine Is Accelerating Again

Let’s go over a quick rundown of Nvidia’s latest numbers so you can see just why we’re so bullish here:

• Q3 revenue: $57 billion, up 62% year-over-year (YoY) and 22% quarter-over-quarter (QoQ)
• Data center revenue: $51.2 billion, up 66% YoY and $10 billion sequentially
• Q4 guidance: ~$65 billion in revenue, up ~65% YoY at the midpoint
• Gross margin: ~73-75% non-GAAP – at this scale

We feel it’s important to highlight that this isn’t some tiny high-growth software start-up. Nvidia is running at a $200 billion-plus annualized revenue pace and still compounding north of 60%.

And growth is picking up steam. 

For the past six quarters, Nvidia’s sales growth rate had been slowing. Bears believed it to be “the beginning of the end.” But what this quarterly performance just proved is that AI demand wasn’t dying – it was digesting before its next leg up.

Now:

• Growth has re-accelerated to 62%.
• Management is calling for even faster growth next quarter at 65%.
• And that’s with essentially zero China data center revenue baked in. 

If you’re looking for evidence that the AI Boom is “slowing,” you won’t find it in Nvidia’s financials.

And that’s just from what we can see on the surface…

The AI Boom Is Speeding Up, Not Slowing Down

Under the hood, the story is even more bullish than what the headline numbers suggest.

Cloud Providers Are Sold Out

On the Nvidia’s conference call, management said the clouds are sold out and that the GPU installed base – Blackwell, Hopper, and older Ampere – is fully utilized. 

Translation: there is no sign of hyperscalers slamming on the brakes. If anything, they’re still flooring it.

With current GPU capacity tapped, attention now turns to how far hyperscalers are willing to expand.

AI Capex Spending Is Surging

That full utilization is exactly why Nvidia now sees visibility into roughly $500 billion of Blackwell + Rubin revenue through the end of 2026 – and that number has been increasing as new AI factory deals get signed.

Meanwhile, external estimates now see AI infrastructure spending heading toward $3- to $4 trillion by 2030. 

If this were a bubble that was about to pop, we’d be seeing missed estimates, weak guidance, slowing orders, and contracting capex plans.

Instead, we’re witnessing beat-and-raise performance, re-accelerating growth, and bigger long-term capex envelopes.

The ‘AI Bubble’ Fear Just Got Debunked

A recent fund manager survey from Bank of America (BAC) said the ‘AI bubble’ is the No. 1 perceived tail risk, with ~45% of managers citing it. 

In effect, Nvidia’s response to Wall Street’s top fear was: ‘Appreciate the concern. See: 62% growth, 65% forward guidance, and sold-out clouds.’

Jensen Huang literally said he doesn’t see an AI bubble – he sees real, widespread demand across clouds, enterprises, and emerging “agentic” and physical AI use cases. And Nvidia’s numbers back him up.

What Nvidia’s Results Mean for AI Stocks

When Nvidia – the core infrastructure tollbooth of AI – is growing faster again, it sends one clear macro signal: The AI Boom is not ending but compounding.

We’re still early in three overlapping transitions:

Each wave adds a new layer of demand on top of the last one. That’s how you end up with a world where AI chips, clouds, power, magnets, and storage all become multi-trillion-dollar ecosystems…

Which brings us to the fun part: what to buy on the AI rebound.

Now, this is not an exhaustive list by any means. But here are some of the names we’d consider on an AI-stock rebound.

Nvidia – The Core AI Tollbooth

This is still the primary index fund of the AI Boom.

• 62% revenue growth.
• 65% estimated growth in Q4.
• 66% data-center growth.
• 73- to 75% gross margins.
• Sold-out clouds.
• Half-trillion-dollar product pipeline visibility.

Until those facts change, Nvidia remains the core AI holding.

AMD – The Fast-Growing Challenger

If Nvidia is the tollbooth, AMD (AMD) is the bypass lane that keeps getting bigger.

• Its MI300/MI350 roadmap is aiming for massive gains in AI inference – up to 35x improvement for future chips versus current gen.
• At its analyst day, AMD projected data center chip revenue reaching $100 billion and overall earnings more than tripling by 2030, implying ~35% annual growth.

As hyperscalers move toward a multi-vendor strategy, AMD is positioned to capture a big slice of incremental AI accelerator demand.

CoreWeave – The Specialized AI Cloud

CoreWeave (CRWV) is basically the Nvidia-as-a-Service company – a specialized AI cloud built on Nvidia GPUs.

• Q3 revenue grew 134% YoY.
• It has multi-billion deals with Microsoft (MSFT), OpenAI, and Meta (META) for AI infrastructure capacity, plus a big cloud capacity agreement with Nvidia itself.

Yes, there are financing and concentration risks. But if you want leveraged exposure to AI compute demand without buying a chip designer, this is about as direct as it gets.

Nebius – The Stealth AI Player

Nebius (NBIS) is a Yandex spin-off turned Western AI cloud, now cutting huge deals of its own:

• Spun out of Yandex to focus on AI cloud infrastructure.
• Signed a $19.4 billion AI infrastructure deal with Microsoft, supplying dedicated GPU capacity from a New Jersey data center through 2031. 
• Reported 355% revenue growth – and a $3 billion AI contract with Meta.

In other words: another hyperscale-adjacent GPU landlord directly riding the AI infrastructure wave.

Oklo – Powering the AI Grid

AI doesn’t just need chips. It needs enormous amounts of power provided 24/7.

That’s where Oklo (OKLO) comes in:

• Sam Altman–backed micro-reactor company focused on small modular nuclear.
• Signed a framework deal with Switch to supply up to 12 GW of nuclear power to data centers through 2044 – one of the largest corporate power agreements ever.
• Boosted its Aurora reactor design to 75 MW explicitly to meet AI data-center demand, and partnered with Vertiv (VRT) to co-design nuclear-powered, AI-optimized data-center infrastructure. 

If Nvidia is the brain of the AI era, Oklo is a candidate to be part of its circulatory system.

MP Materials – The Magnet Supplier for Physical AI

Every joint, AI-optimized fan, and EV-style drive unit in a humanoid robot needs rare earth magnets to function. That’s MP Materials‘ (MP) domain.

MP is:

• America’s only fully integrated rare earth miner + magnet manufacturer. 
• A key supplier of neodymium magnets used in EVs, smartphones, robots, and now increasingly data centers and AI hardware.

If you believe in physical AI – humanoids, warehouse bots, robotaxis – you definitely want exposure to the magnet supply chain.

Celestica – The AI Hardware Builder

Of course, someone has to actually build all the servers, racks, and systems that hold up the AI industry.

Celestica (CLS) has quietly become a ‘dark horse’ in this arena:

• Q3 revenue grew ~28%, with management raising its 2025 outlook on surging AI/hyperscaler demand.
• Hyperscalers now make up 77% of its Connectivity & Cloud Solutions segment, up from 51% in 2022. 

As AI server volumes explode, Celestica becomes a picks-and-shovels play on the physical build-out.

Seagate – The Storage Backbone of AI

After chips, clouds, and power, there’s still one unsung hero of the AI stack: storage. All those tokens and model checkpoints have to live somewhere.

• Seagate (STX) is shipping 30TB-plus hard drives to specifically meet the surge in AI data-center storage demand – with 40TB drives already sampling and 44- to 50TB on the roadmap. 
• AI data centers are creating a global HDD shortage, with backorders stretching out years and Street targets rising for both Seagate and Western Digital (WDC). 

If AI is a data engine, Seagate is one of the key beneficiaries of the storage bottleneck.

Bottom Line: Nvidia Earnings Signal AI’s Second Leg Up

Nvidia just did the one thing the bears didn’t want it to…

After six quarters of slowing, it showed that AI revenue growth is re-accelerating – and likely to keep gaining speed.

That’s not the profile of a bubble about to pop. That’s the profile of a structural boom grinding higher through the noise.

So, yes – we think this report will go a long way toward putting “AI Bubble” fears to bed, at least for a while. And if it sparks the rebound rally we expect, names like NVDA, AMD, CoreWeave, Nebius, Oklo, MP, Celestica, and Seagate are exactly the kind of AI infrastructure plays we want on our buy-the-dip list.

It is time to get positioned for the AI rally coming back to life.

That said, the center of gravity in Big Tech is shifting beneath our feet. The innovation race that once belonged to Silicon Valley is now being refereed in Washington, D.C., where the government holds the purse strings for AI infrastructure, chip exports, and the next generation of trillion-dollar breakthroughs.

So, don’t just watch earnings… watch where the influence is coming from. In the AI age, the winners won’t just build the best chips… they’ll build the closest ties with our government. Policy, power, and positioning now determine which companies get subsidized, which get throttled, and which are left behind.

Because of how critical this moment is, I jumped on camera to break it all down in a short video… you’ll see what’s changing, which stocks stand to benefit, and why this moment matters more than any single earnings report. 

Watch our special briefing here.

Sincerely,

Luke Lango

The post Nvidia Crushes Earnings as AI Demand Stays Red-Hot appeared first on InvestorPlace.

Because of the government shutdown, we have still not received a retail-sales report since September 16 – which provided us with data for August.

That data gap leaves investors flying partially blind at a moment when questions about the strength of the U.S. consumer are growing louder.

What’s more, it leaves the Federal Reserve without crucial data it needs to continue lowering key interest rates.

In this kind of murky backdrop, earnings season steps in.

In uncertain environments like this, where talk of a “K-shaped” economy is growing louder, results from consumer-driven retail names often reveal what economic indicators can’t: who’s adapting and who’s losing momentum.

For retail specifically, this means that higher-income shoppers continue spending, while lower- and middle-income households pull back.

And as you’ll see in a moment, the retailers positioned on the right side of that divide are separating from those caught in the middle.

This week, we got results from two major retailers: Target Corporation (TGT) and Walmart Inc. (WMT).

So, in today’s ÃÛÌÒ´«Ã½ 360, I’ll review both companies’ results and tell you which one is the better buy according to Stock Grader. Then, I’ll explain why being selective in your stocks is more important than ever right now.

Target

Target reported its third-quarter earnings before the bell on Wednesday morning. It reported adjusted earnings per share of $1.78, narrowly beating expectations of $1.72. Net revenue declined 1.5% year-over-year to $25.27 billion, slightly below expectations of $25.32 billion.

That revenue weakness continues a much longer trend: Target has now posted roughly three years – 12 straight quarters – of flat or negative sales. Ouch.

In a normal economy, that would be concerning. In a K-shaped one, it’s a major warning sign that Target’s strategy simply isn’t matching what shoppers want.

What stood out were the strategic shifts. Target is increasing capital expenditures by 25% to $5 billion, even as it plans to cut 1,800 jobs. It also announced a leadership change, with current COO Michael Fiddelke stepping in as CEO in 2026, replacing Brian Cornell.

In a notable tech move, Target is preparing to launch a beta experience with OpenAI, allowing customers to use ChatGPT within its app for shopping purposes.

But these investments are happening at the exact moment Target’s customers are shifting to lower-priced alternatives, such as Amazon.com, Inc. (AMZN), The TJX Companies, Inc. (TJX) – and, yes, Walmart.

Company management has lowered its full-year profit guidance, now expecting full-year adjusted earnings per share between $7.00 and $7.50. Its previous guidance was $7.75 to $8.25. The company also maintained its expectation for a low single-digit decline in sales for the fourth quarter.

Chief Commercial Officer Rick Gomez struck a cautious tone heading into the holiday season during the earnings call Wednesday morning, saying shoppers are focusing on “what goes under the tree versus what goes on the tree.”

Translation: Even during the peak retail period, shoppers are focusing on essentials and gifts, not décor or home items – which are one of Target’s key calling cards. Not a good sign, folks.

Walmart

Now, let’s turn to Walmart.

On Thursday morning, Walmart reported third-quarter earnings per share of $0.62, just above analysts’ expectations for $0.60. Revenue rose 6% year-over-year to $179.5 billion, also above expectations for $177.6 billion.

Walmart also surpassed expectations with its same-store U.S. sales, rising 4.5%, which exceeded the expected 4% rise. It also reported a 1.8% rise in foot traffic and a 2.7% rise in the average ticket at U.S. stores.

Looking ahead, Walmart has raised its guidance for the fiscal year, stating that it now expects net sales to increase 4.8% to 5.1%. The previous guidance was 3.75% to 4.75%.

One of the most impressive highlights was Walmart’s 27% surge in global online sales – a sign that its digital investments, logistics upgrades and automation strategy are paying off. This kind of execution has helped Walmart succeed across income levels, even as lower-income shoppers cut back.

See, unlike Target, Walmart is benefiting from both ends of the K-shaped economy. Budget-stretched consumers continue to rely on Walmart for essentials, while higher-income households are trading down to Walmart for value on their bigger-ticket items.

That shift is becoming a major growth engine. I should also add that Walmart has managed tariff pressures far better than its peers. This discipline helped Walmart avoid the margin hit that led Target to cut guidance.

Furthermore, a technological transformation is happening behind the scenes. Aside from the incredible online sales growth fueled by its Walmart+ membership app, it’s notable that the company’s advertising business grew 53% year-over-year. And through a new partnership with OpenAI, Walmart and Sam’s Club members can now reorder groceries directly through ChatGPT.

Overall, the company’s goal is to change the way you shop online – from a traditional search-and-scroll model to a personalized, conversational interaction. 

Increasingly, the company is becoming one of the most tech-forward retailers in the business.

It’s no wonder, then, that shares of Walmart jumped 6% after the market closed on Thursday.

The Better Buy to Put in the Check Out Aisle

Now that we’ve reviewed the numbers, which company is the better buy? Let’s take a look at what my Stock Grader (subscription required) has to say…

Based on these results, Walmart is the clear winner. It earns a solid Quantitative Grade of B, a Fundamental Grade of C, giving it a Total Grade of B. This signals that the stock is  “Strong.”

Target, on the other hand, receives poor marks across the board, with a Quantitative Grade of F, a Fundamental Grade of D and a Total Grade of F, making it “Very Weak.”

The divergence makes perfect sense when you consider the differences in execution I noted earlier.

Walmart has earnings momentum, digital acceleration and market-share gains across income levels. Target has declining traffic, heavier exposure to discretionary categories, strategic inconsistency and no clear catalyst.

But the real takeaway here is bigger than just one stock…

What to Focus On

These results highlight a broader truth: This is a stock picker’s market, folks.

Walmart vs. Target is a textbook example. There’s no rising tide lifting every retailer. There’s a widening gap between companies that are adapting to consumer behavior, pricing pressures and AI-driven operational changes – and those that aren’t.

Because the divide between the “haves” and “have nots” – and the “good stocks” and “bad stocks” – isn’t going away anytime soon. If anything, it will accelerate in the age of the Economic Singularity…

This is the next great phase of AI-driven disruption. It’s when AI becomes the central engine of productivity, growth and innovation across every major sector.

Walmart’s own evolution shows what this future looks like. AI is no longer a side story… It is THE story. And the companies embracing it fastest are pulling away from the pack.

So, what does that mean for you?

It means focusing on fundamentally superior companies is now more important than ever.

That’s why I recently put together a special report, where I identify seven fundamentally superior companies in the heart of this sea change that are poised to deliver extraordinary returns in the years ahead.

Go here to learn more now.

Sincerely,

Louis Navellier

Editor, ÃÛÌÒ´«Ã½ 360

The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

Walmart Inc. (WMT)

The post Walmart vs. Target: Only One Is Built For This Economy appeared first on InvestorPlace.

Just after this morning’s opening bell, the market breathed a sigh of relief.

Last night, Nvidia Corp. (NVDA) delivered the earnings report that Wall Street desperately wanted – crushing expectations and, at least for a moment, silencing doubts about the AI boom.

Since late October, the tech/AI trade has been wobbling. The narrative driving sky-high valuations looked shaky as questions mounted about whether the AI boom was overheating.

Investors were asking: Has the trade peaked, or will it snap back?

Last night, with its earnings report, Nvidia confirmed that the AI infrastructure boom is very real with an earnings report that legendary investor Louis Navellier called “perfect.”

The company didn’t just clear modest expectations…it blasted past them

Both revenue and earnings beat forecasts. As importantly, management painted a rosy picture of the future.

This was key. Wall Street wanted reassurance that the gravy train would continue.

Here’s The Wall Street Journal:

The company increased its guidance for the current quarter, estimating that sales will reach $65 billion—analysts had predicted revenue of $62.1 billion for the quarter.

Also important, the data-center segment (the engine of this AI infrastructure bet) generated roughly $51.2 billion, signaling that the compute backbone of the AI build-out remains in full throttle.

Here’s CEO Jensen Huang:

There’s been a lot of talk about an AI bubble. From our vantage point, we see something very different.

Huang went on to say that “cloud GPUs are sold out,” and sales for Nvidia’s Blackwell chip are “off the charts.” But here was the doozy:

We’ve entered the virtuous cycle of AI.

AI is going everywhere, doing everything, all at once.

And it didn’t stop there. Tech bulls were thrown another bone – robotics.

Management highlighted robotics as a key growth area, with Q3 automotive and robotics sales increasing 32% annualized.

This aligns with what our tech expert Luke Lango, editor of Innovation Investor, has been tracking – the coming wave of humanoid robotics that will transform manufacturing, healthcare, and beyond. We’ll have more on this from Luke in an upcoming Digest.

But while Nvidia’s strong earnings goosed the stock market just after the opening bell, that wasn’t the end of the story

As of mid-morning, it appeared today would be a big “up” day on Wall Street, led by NVDA, up about 5%. But as the session is progressing, that gain has turned to a loss of nearly 1%.

Meanwhile, the broader market has followed suit: early strength in the S&P, Dow, and Nasdaq has fully reversed, with all three indexes turning negative.

This flip reflects a deeper tension beneath the surface.

Even with Nvidia’s blowout results, today’s reversal shows that Wall Street still isn’t fully convinced about the near-term payoff of the AI boom. Investors may love the long-term story – but the market is signaling that the path from here may be bumpier than Nvidia’s “perfect” quarter suggests.

But this isn’t the only news impacting Wall Street today…

This morning, after weeks of silence during the federal government shutdown, the Bureau of Labor Statistics released its September jobs data, which had many investors on edge.

Would we find a crumbling labor market? How bad would it be?

In an unexpected twist, the U.S. economy added substantially greater jobs than forecasted.

Here’s CNBC with the details:

Nonfarm payrolls increased by 119,000 in the month, up from the 4,000 jobs lost in August following a downward revision. The Dow Jones consensus estimate for September was 50,000.

While this reflects a reasonably healthy labor market – certainly one not on the brink of recession – the unemployment rate crept higher to 4.4%. That’s its highest reading since October 2021. Plus, most of the job gains came from healthcare and restaurants, not widespread hiring.

So, how might this affect the Fed’s interest rate decision next month?

The stronger-than-expected growth shows that the labor market isn’t on the edge of a cliff as has been feared. And while some would argue that this means the Fed will take a breather on rate cuts in December, some on Wall Street see it differently…

Rather than focusing on that 119,000 gain, traders are zeroing in on that higher 4.4% unemployment rate and interpreting it as “more reason to cut.” Plus, if we average job gains over the last four months, the figure clocks in at about 44,000 – not exactly robust.

So, some on Wall Street are growing more optimistic about another cut. We can see this by looking at the CME Group’s FedWatch Tool. This shows us the probability that traders are assigning to different fed funds target rates in the future.

Yesterday, traders put roughly 30% chance on a December rate cut; that number has risen to 42% today in the wake of the new jobs print. Still, this leaves nearly 60% of traders banking on a pause.

Circling back to Louis, here’s his quick take from this morning’s Growth Investor Flash Alert:

Let’s hope the Fed does the right thing – cuts rates on December 10 – but if not, they’ll be cutting rates in the next year. They have to.

Nvidia’s earnings victory isn’t just a win for shareholders. It’s another data point in a story we’ve been tracking closely in the Digest – the wealth divide powered by tech and now accelerated by AI.

Our macro investing expert Eric Fry, editor of Fry’s Investment Report, has been at the forefront of this story for years, helping his readers profit. The latest example is the 110% return that Fry’s Investment Report booked on tech chip darling Advanced Micro Devices Inc. (AMD) last month.

Longtime Digest readers will recall Eric’s term, the “Technochasm” which describes the wide – and expanding – wealth gap in the United States that, in large part, is being driven by technology.

Increasingly, a small group of technology business owners, key employees, and investors are on the receiving end of AI’s wealth creation.

To illustrate, let’s circle back to Nvidia.

Here’s The Kobeissi Letter from August:

This is incredible: Roughly 50% of Nvidia employees are now worth over $25 million.

Roughly 80% of Nvidia employees are now millionaires.

The AI revolution is producing unprecedented wealth.

Unprecedented wealth…for some.

Thanks to AI, wealth concentration is now accelerating and exploding the gap between the “haves” and “have-nots” to the greatest level of our modern age.

While Nvidia employees are considering their color options for their next Ferrari, nearly 42 million Americans – about 12% of our population – are on the Supplemental Nutrition Assistance Program (SNAP), the food stamp program.

For the latest on this from Eric, let’s go to his November issue of Investment Report from earlier this week:

The AI investment boom is another force that’s powering the growing divide between rich and poor.

These massive investments will generate a lot of economic stimulus, but it will accrue narrowly to capital owners, not to bartenders and baristas. The GDP may look okay, but the paycheck distribution doesn’t.

America isn’t collapsing; it’s diverging.

Given this divergence, Eric argues that investors should be thinking carefully about their exposure right now

We’re increasingly entering a “balance beam” market.

Lean too far to one side and you’re exposed to companies hemorrhaging sales as stretched consumers on the wrong side of the Technochasm pull back.

Here’s Eric’s related investment takeaway:

The cautious investor might want to lighten up on the companies with heavy exposure to stretched households.

That group would include industries like mass-market restaurants, discretionary retail, subprime credit, and auto finance.

But lean too far the other way, and you’ll find yourself exposed to stocks that – though high-flying – are increasingly risky due to excessive valuations (today’s market reversal illustrates such risk).

Back to Eric:

Trimming positions in high-flying AI stocks might also be a prudent course of action.

Because many of these stocks are “priced for perfection,” even small doses of bad news can cause outsized selloffs.

So, how do we stay squarely on the balance beam and move forward today?

One option?

Health care.

Here’s Eric with why:

Valuations across the healthcare sector have tumbled to record lows relative to the S&P 500.

You’d have to go back more than 30 years to find valuations this depressed.

As one example of a great company selling at a bargain price, Eric highlights Pfizer Inc. (PFE). It’s trading at a historic discount to the S&P:

Investors are now paying about 70% less for a dollar of Pfizer earnings than for a dollar of earnings from the S&P 500 as a whole.

This is the largest discount since 1993 – right before the start of a powerful bull market for healthcare stocks.

Over the next six years, PFE soared more than 1,000% over the S&P 500 index.

Want another idea?

Eric points toward Bristol-Myers Squibb Co. (BMY), one of the world’s largest pharmaceutical companies.

Back to Eric for a few numbers:

The company raised its midpoint revenue guidance for the year from $46 billion to $47.75 billion and bumped its earnings-per-share guidance to $6.50. Free cash flow is rising sharply, and net debt continues to decline.

Bristol-Myers trades for about seven times forward earnings – one-third of the S&P’s multiple – and yields more than 5%, backed by strong free cash flow and an A-rated balance sheet.

Those numbers suggest a tired, no-growth company, yet its business is clearly regaining momentum.

Eric has recommended two other drug stocks in Fry’s Investment Report – both up nearly 50% in 2025, roughly tripling the S&P’s 13% gain.

If you’re interested in knowing which ones, Eric breaks down his complete healthcare strategy – including these two winning positions – in his latest issue. Click here to learn how to join Fry’s Investment Report and see his full analysis.

Overall, AI is accelerating the wealth divide, leaving some companies flush with capital – yet perhaps with dangerously lofty valuations – while others struggle under the weight of shrinking consumer budgets.

Health care offers a middle path – participating in the same powerful forces reshaping the economy, but at valuations that suggest plenty of room to run.

Here’s Eric’s bottom line:

Pharma’s cash flows are on the rise, gross margins are still roughly double the S&P’s, and the sector is beginning to integrate AI in ways that could make drug development faster, cheaper, and more precise.

As an added plus, the sector offers a healthy 3% dividend yield – more than double the S&P 500’s.

We’ll keep you updated on all these stories here in the Digest.

Have a good evening,

Jeff Remsburg

The post Wall Street Soars – Then Tanks – After NVDA Earnings appeared first on InvestorPlace.

Railroads had steel. The automobile age had oil. The internet ran on cheap copper and fiber. 

In fact, I think the most explosive AI trade of 2026 won’t come from chips, algorithms, or training compute. It’s going to come from that exact dull-looking white metal most investors abandoned years ago… lithium.

Remember lithium? It was the fuel behind the great EV dream from 2019 to 2021. Back then, everyone thought electric vehicles were going to swallow the global auto market in one bite. 

Lithium stocks soared. Demand forecasts went parabolic. And then reality hit. EV adoption slowed, lithium prices crashed, and the stocks went from heroes to total portfolio embarrassments. 

A lot of investors swore they’d never touch lithium again.

That kind of emotional capitulation (people giving up at the exact wrong moment)  is usually where the next great trade begins. And in my view, lithium is shaping up to be exactly that.

While most of Wall Street is still arguing about Nvidia’s (NVDA) valuation or whether the GPU cycle has peaked, the early winners of the lithium boom are trading like they’ve been left for dead. 

What if everyone’s staring at the wrong bottleneck? 

What if the next leg of the AI boom isn’t constrained by compute…but by energy storage … by the simple ability to keep the machines powered on?

That’s the thesis I lay out in our latest episode of Being Exponential: lithium is no longer just an EV story. It’s becoming an AI story. A big one.

And in the sections that follow, I’ll walk you through exactly why AI data centers and “physical AI” – humanoid robots, warehouse automation, self-driving cars, and AI glasses – are about to ignite a massive new demand wave for lithium… and why hypergrowth-minded investors should position themselves now, before the crowd figures it out.

Click below to give our podcast a watch!

The First Driver: The Coming Energy Crunch Behind AI

When people talk about AI, they obsess over chips. GPUs, NPUs, TPUs … the alphabet soup gets all the headlines. But what almost nobody’s talking about is the far more fundamental constraint: energy.

Let me put it bluntly … AI data centers are becoming some of the most power-hungry facilities humanity has ever built. A single hyperscale AI center can draw more electricity than a small town. And as models get larger, agentic AI takes off, and inferencing moves into everything from search to robotics, those power requirements rise exponentially.

That creates a new kind of bottleneck: not computing power, but uninterrupted power. AI needs to be on. All the time. No exceptions.

And that’s where battery energy storage systems (BESS) enter the picture.

Right now, companies like Fluence (FLNC), Eos Energy Enterprises (EOS), and a handful of next-gen storage providers are scaling up massive battery systems designed to sit on-site at these data centers. 

Why? 

Because the future of AI reliability won’t come from the traditional grid. It’ll come from localized, high-capacity storage that keeps server farms online even during grid instability, demand spikes, or outages.

In my view, the new standard emerging across the industry is what I call “nuclear plus storage” or “baseload plus storage.” 

You pair a steady, resilient energy source – whether it’s advanced nuclear, geothermal, or large-scale solar – with gigantic lithium-based storage banks that act as a buffer and a backup.

Every time a new AI data center gets built, it’s not just a GPU order. It’s a multi-year, multi-gigawatt-hour lithium contract.

This is why I keep stressing that lithium demand isn’t going to be driven only by the EV market anymore. The AI energy infrastructure buildout is a megatrend on its own, and we’re just starting to see Wall Street wake up to that fact.

The Second Driver: “Physical AI” Brings Intelligence Into the Real World

Up until now, the AI boom has lived mostly inside screens. You type a prompt, you get an answer. 

But that’s about to change.

We’re entering what I call the era of physical AI: when intelligence leaves the cloud and starts operating machines, vehicles, and devices in the real world. 

And when you give AI a body, you give it a battery.

Here’s what I mean.

Humanoid Robots Are Coming Faster Than People Realize

China is rolling out humanoid robots at a pace that should scare U.S. investors awake. Xpeng’s new unit, XiaoPang Motors, has already demoed full-scale bipedal bots with fluid motion, gripping hands, and locomotion capabilities that looked like science fiction just a year ago.

In the U.S., companies like Figure, Tesla (TSLA), and even smaller robotics startups are preparing commercial launches for 2025–2026.

What powers all of them?

Lithium batteries. And not small ones.

A humanoid robot is basically a walking battery pack wrapped in motors and sensors.

Warehouse Automation Is Scaling Into the Millions

Amazon (AMZN) already operates over 750,000 mobile warehouse robots. That number will easily exceed a million, and then two million … because every retailer with a warehouse will need to match Amazon’s productivity curve.

Every one of those robots runs on rechargeable lithium power.

Self-Driving Cars Are the Ultimate Lithium Consumers

People forget this, but autonomous vehicles are computers on wheels. 

As autonomy increases, the car’s energy demands skyrocket because the compute load skyrockets.

All of that compute must be supported by stable, high-density lithium battery packs.

AI Glasses Will Be the Fastest-Scaling Consumer Device Since the Smartphone

I stand by this prediction: Meta Connect 2026 will be the iPhone moment for AI glasses.

Lightweight, always-on AI assistants integrated into your vision require:

• high-density micro-batteries,
• rapid charging cycles,
• and optimized lithium chemistry tuned for wearables.

This will create a brand-new consumer demand curve that barely exists today.

Why 2026+ Is the Lithium Breakout Window

From 2023–2025, the world focused on training models in the cloud. But 2026 and beyond will be about deploying those models into the physical world, at massive scale.

Every robot.

Every autonomous car.

Every smart device.

Every AI center.

Every storage bank.

All lithium customers.

That’s the inflection point the market still hasn’t priced in.

If we’re right, the lithium market is about to experience something like the GPU boom — but on the commodity side of the equation, where the leverage is enormous and the cycles are violent.

This is why I’m pounding the table: lithium isn’t an EV story anymore. It’s the next big AI story..

The Bottom Line

Put those two forces together – on‑site energy storage and physical AI hardware – and you get a very different demand curve than the old “EV only” narrative.

Lithium stops being a one‑industry metal and becomes the backbone of the broader AI build‑out. 

That’s why lithium names are starting to break out from brutal bear markets. The market is quietly repricing the idea that this metal’s best days weren’t behind it after all.

That doesn’t mean blindly chasing every lithium ticker with “battery” in the name. It means looking for the companies best positioned to serve sustained, diversified demand from both energy storage and AI‑enabled devices. 

Low‑cost producers with strong balance sheets, access to high‑quality resources, and existing relationships with major customers should have an edge as this new cycle develops.

It also means watching the calendar. We think 2026 could be the inflection year, when humanoid robots begin commercial shipments, AI glasses go mainstream, and AI‑supercharged data centers proliferate. 

If we’re right, the market will likely start discounting that future well before the headlines catch up – just as it did with GPUs and data‑center stocks years ago.

So while everyone else argues about Nvidia’s latest quarter or whether the “AI bubble” has popped, a quieter story is taking shape in the commodity pits. Lithium, once written off as a busted EV trade, may be quietly positioning itself as the next great way to invest in the AI age.

What’s more, the center of gravity in Big Tech is shifting beneath our feet. The innovation race that once belonged to Silicon Valley is now being refereed in Washington, D.C.  – where policymakers, not founders, are increasingly deciding which technologies get funded, which companies scale, and which business models survive.

This is the biggest economic dynamic in play right now: the White House is no longer a passive observer of the markets. It’s an active participant – intervening, taking stakes, steering capital flows, and effectively choosing the winners (and the losers) across entire industries.

In the AI era, it’s not enough for a company to build world-class technology. It also needs world-class alignment with policymakers. Subsidies, approvals, export controls, and federal partnerships now matter just as much as product roadmaps. 

And the companies that secure those relationships will be the ones that compound power over the next decade.

Because this shift is so important, I sat down with legendary investor Louie Navellier to break it all down in a special video briefing. 

We dive deep into the new Washington-to-Silicon-Valley pipeline, the federal intervention shaping AI and energy markets, the opportunities being created, and the risks most investors are completely overlooking.

If you want to understand the New Era of Capitalism – and how to position yourself on the right side of it – don’t miss this conversation.

Watch our special briefing here.

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Steve Jobs was one of them. His ideas changed how people lived. And they moved markets.

Every keynote reshaped expectations. Entire industries had to adjust to wherever Apple Inc. (AAPL) went next.

He influenced the trajectory of the entire tech market. And if things ever got dicey or uncertain, just a few words would often do the trick to reassure investors.

The point is, Jobs wasn’t just any CEO.

On a similar note, Warren Buffett became the market’s steady anchor over his long career.

For example, during 2008, at the height of the financial crisis, Buffett penned a column in The New York Times titled “Buy American. I Am.”

The column reassured investors when they needed it most. By encouraging a long-term, rational outlook amid the panic, investors who listened made out very well over the long run.

Two very different figures, two very different philosophies. But both served a critical leadership role in the market.

Now, with Buffett stepping into retirement and Jobs’ era long behind us, we’re left to wonder: Who will fill their shoes?

Folks, today, that figure is NVIDIA Corporation’s (NVDA) Jensen Huang.

His company powers the AI Revolution. And the AI Revolution is what’s driving our economy – and the market. And as we just saw again this week, every single NVIDIA earnings report has become a market-moving event.

When Jensen speaks, the AI world listens… and so does Wall Street.

With the market in a sour mood recently (as we discussed in Tuesday’s ÃÛÌÒ´«Ã½ 360), a single line of guidance from Huang could set the tone for the entire tech sector. Because, like it or not, this is his era.

This is Jensen’s moment – and in Jensen we trust.

So, in today’s ÃÛÌÒ´«Ã½ 360, I’ll cover NVIDIA’s latest earnings and explain what they mean for the opportunities ahead.

Breaking Down NVIDIA’s Latest Results

NVIDIA delivered another outstanding quarter – one that should put to rest any speculation about a slowdown in AI demand.

For its third quarter in fiscal year 2026, the company achieved record revenue of $57 billion and earnings of $1.30 per share. That represents 62% year-over-year revenue growth and 60% year-over-year earnings growth.

Both figures topped expectations. Wall Street was looking for earnings of $1.26 per share on $55.09 billion in revenue, so NVIDIA posted a 3.2% earnings surprise and a 3.5% revenue surprise.

The biggest highlight once again came from NVIDIA’s data center business. Data center revenue reached a record $51.2 billion, up 66% year-over-year, and was comfortably above analyst estimates of $49.3 billion.

CEO Huang noted that “Blackwell sales are off the charts” and that cloud GPUs remain sold out. NVIDIA also highlighted that Blackwell Ultra has become its leading architecture across all customer categories, while prior-generation Blackwell systems continue to see strong demand.

Looking ahead, NVIDIA expects revenues of approximately $65 billion in the fourth quarter, representing 65% year-over-year growth and surpassing Wall Street’s current estimate of $62.02 billion.

In short: NVIDIA sees continued strength well into 2026.

The market reacted positively to the news, with NVIDIA rallying this morning. The results also helped lift several AI-related names that had sold off earlier in the week due to concerns about weakening demand and sent the NASDAQ up more than 2% today out of the gate. (Although Wall Street took back those gains, and then some, later due to worries about the Fed not cutting rates in December.)

And according to my Stock Grader (subscription required), NVIDIA currently holds a B-rating, meaning it is “Strong” – reflecting excellent fundamentals and continued institutional buying pressure.

These blowout results – strong sales, strong earnings and stronger guidance – capped what has been the best earnings season in four years for the S&P 500. And for anyone still questioning whether AI demand is cooling, NVIDIA’s performance sent a very clear message: The AI buildout remains firmly intact.

What Wall Street Is Overlooking

To truly understand NVIDIA right now, you must look beyond the headlines. Because the data coming out of the AI supply chain tells a very different story than the mood on Wall Street.

A few weeks ago, Jensen Huang revealed that NVIDIA has already secured $500 billion in booked orders for 2025 and 2026. Think about that for a moment…

A half-trillion dollars’ worth of GPUs, networking hardware and next-generation systems that customers have ordered are already on the books.

Analysts immediately raised their 2026 revenue expectations because this level of visibility is extremely rare in the semiconductor industry.

We’re also seeing significant commitments across the rest of the AI landscape. This past Tuesday, NVIDIA and Microsoft Corporation (MSFT) committed up to $15 billion to Anthropic, one of the fastest-growing frontier AI model developers. In turn, Anthropic agreed to purchase $30 billion in cloud compute and use up to 1 gigawatt of NVIDIA-based hardware. That’s a buildout that could cost more than $20 billion on its own.

These large-scale commitments lock in demand years in advance.

This comes on top of OpenAI’s plan to spend $1.4 trillion on new compute resources – a massive buildout that will rely heavily on NVIDIA hardware and architectures. All of this points to significantly larger workloads, more model training and much greater data center capacity in the years ahead.

This is why the headlines often feel disconnected from the numbers. Wall Street is arguing about margins and wording in the guidance – and the worrywarts are talking about “AI bubbles.” Meanwhile, the companies driving the AI buildout are racing to secure capacity years in advance.

That’s the real story. AI demand isn’t moderating – it’s broadening. And it highlights just how early we still are in this buildout.

What This Means Going Forward

Once the dust settles from NVIDIA’s results, it’s important to keep our focus on the bigger picture.

The AI buildout is still accelerating. The day-to-day reaction to earnings doesn’t change the larger trend.

Data center operators, model developers, energy suppliers and network builders are all preparing for workloads far larger than anything we’ve seen before. NVIDIA’s results reflect the scale of the AI economy, not just the momentum of one company.

And this buildout isn’t happening in isolation. When you look at rising backlogs… multiyear commitments for compute capacity… America onshoring more manufacturing and infrastructure… and GDP estimates rising as a direct result of the AI boom, it becomes clear that we’re entering a new phase of growth.

A phase where AI doesn’t just improve productivity – it becomes the engine of productivity.

That’s the foundation of what I call the Economic Singularity – a period when AI-driven output, innovation and infrastructure begin compounding together and reshaping our entire economy.

But here’s the part most investors are missing…

The biggest winners of the Economic Singularity won’t just be the obvious AI giants. They’ll be the companies building the essential systems, software and infrastructure behind the entire AI Revolution.

These are the businesses seeing rising backlogs, accelerating demand and multiyear visibility — and they’re still flying below most of Wall Street’s radar.

That’s why I recently put together the special report The Singularity 7: The New Exponential Wealth Machines of the AI Revolution, where I identify seven companies at the epicenter of this transformation and explain why I believe they have the potential to deliver extraordinary returns in the years ahead.

You can learn more about the Economic Singularity – and how to get your hands on my full research, including The Singularity 7 report – by clicking here.

Sincerely,

Louis Navellier

Editor, ÃÛÌÒ´«Ã½ 360

P.S. The government’s sovereign wealth fund – which we’ve discussed here over the past few months – is also going to keep this boom powering forward. Its mandate is simple: direct federal capital into the U.S. companies most essential to our long-term technological leadership. We’re already seeing what happens when that money hits the news – certain stocks tied to key AI initiatives have surged 200%, 300%, even 400% in a matter of days.

Now, my InvestorPlace colleague Luke Lango has been digging deeply into this trend, and he’s uncovered some research I think you’ll want to see. Luke believes we’re in the early stages of a modern “Manhattan Project for AI,” and that a select group of smaller U.S. firms could be next in line for major government backing. He’s preparing a new broadcast that reveals the first company on his shortlist – and explains why early investors could see 10X potential over the next one to two years as this federal AI buildout accelerates.

Keep an eye out for that next week. You’ll want to see what he’s found.

The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

NVIDIA Corporation (NVDA)

The post NVIDIA’s Earnings Confirm It: “In Jensen We Trust” appeared first on InvestorPlace.

As we’ve entered the holiday season, many folks are gearing up for Thanksgiving and Christmas, days filled with delicious food, festive music, and spice-filled aromas.

But Wall Street just celebrated its own pseudo-holiday: Nvidia Corp.’s (NVDA) latest quarterly earnings report.

On Wednesday, the AI chip maker reported earnings of $1.30 per share and revenue of $57 billion, beating expectations on the top and bottom lines. Guidance for fourth-quarter sales was also strong.

Nvidia reported it made $51.2 billion in data center sales – $43 billion of which was for the company’s GPUs.

Celebrations ensued as Nvidia’s stock rallied strongly this morning, though it’s fizzling this afternoon

Either way, it’s a major “Sell” in my book. And I’m not the only one to think so.

• Earlier this week, Thiel Macro LLC, the hedge fund of PayPal Holdings Inc. (PYPL) and Palantir Technologies Inc. (PLTR) co-founderPeter Thiel, dumped its stake in Nvidia ahead of the company’s earnings.
• SoftBank Group Corp. revealed last week that it sold its entire stake in Nvidia in October (with potential plans to fund OpenAI instead).
• And two weeks ago, a regulatory filing revealed that Michael Burry – of The Big Short fame – placed significant short bets against the company.

So, in today’s Smart Money, I’ll explain why you also should keep Nvidia out of your portfolio, even as Wall Street celebrates.

I’ll also share another Big Tech stock I believe is a “Sell,” and tell you about some companies you should shift your attention to instead.

Let’s get started…

Why Nvidia Is a “Sell”

Now, I am not here to claim that Nvidia is a terrible stock. It’s not.

It’s been a great stock. And it remains a great company run by great people.

No one can deny how much profit the stock has made for investors. Since the beginning of the year alone, Nvidia has risen 33%, as I write.

This may sound like a good deal on the surface, but I’d like to offer you a different perspective…

I think Nvidia’s big-time money grab is over, and it’s losing runway space along with other Big Tech companies.

Collectively, major tech companies are spending hundreds of billions of dollars to develop leading-edge AI capabilities. The pile of major investments includes Meta Platforms Inc.’s (META) two separate $14 billion expenditures this year (one to build its superintelligence team, and the other for computing power from CoreWeave Inc. [CRWV]); and Nvidia itself announced a $10 billion investment in Anthropic this week.

This kind of monstrous investment imperative could stifle Nvidia’s profit growth and hinder free cash flow generation. This calls forth the scary “bubble” word that has been popping up in headlines over the past few weeks.

Even Alphabet Inc. (GOOGL) CEO Sundar Pichai said on Tuesday, “I think no company is going to be immune [from the potential burst], including us.”

That certainly includes Nvidia.

Now, all hell hasn’t broken loose. But we are watching the chip king’s margins fall year-over-year. In October 2024, Nvidia had a 76.4% gross margin. Now, it’s down to 73.4%. This decrease is due to the company’s transition from chip products to data center solutions. Management has also cited general rising input costs and the need for continued cost improvements to maintain their high margins.

Obviously, increased spending and falling profits aren’t a winning combo. And future margin compression is a key concern for investors due to increasing competition…

Chip Competition… and Another “Sell”

Many of the Magnificent Seven companies are developing their own AI chips.

Google designs and manufactures its own chips, called Tensor Processing Units (TPUs), for AI, data centers, and smartphones. In fact, Apple Inc. (AAPL) uses Google’s TPUs – while also making its own custom processors, known as “Apple Silicon.”

To round it out, Meta started developing and testing its own AI chips, known as Meta Training and Inference Accelerators (MTIA), earlier this year.

All of these chips were created to reduce dependency on Nvidia, which could eventually get cut out of the picture altogether.

In short, Nvidia is losing its shine. So, it’s no surprise to me that important names like Burry, SoftBank, and Thiel cut the company loose.

In fact, Nvidia wasn’t the only high-flying AI stock Thiel offloaded. He also cut down his Tesla Inc. (TSLA) position by over 76%.

Tesla is another “Sell” recommendation of mine. Not even its humanoid robot Optimus can “save” the company in my eyes. There are no formal commitments from large companies wanting to purchase the humanoid robot.

Now that I’ve told you which “celebrated” stocks to avoid, let’s take a look at a couple of stocks I rank as “Buys”…

Your Post-Nvidia Portfolio

While everyone obsesses over Nvidia and its AI chips, they’re missing the one component that makes everything work. Without it, even the most powerful AI chip is just expensive silicon.

At Fry’s Investment Report, I’ve been following a particular under-the-radar company that makes this vital component in AI data centers, allowing servers to communicate and learn from each other.

While Nvidia is up over 30% year-to-date, this company more than doubled that gain with a year-to-date climb of nearly 70%. And it’s currently up 110% since I recommended it to to the paid members of Fry’s Investment Report.

I’ve put all of the information in my special report, Optical-Fiber Fortune: The 10X AI Infrastructure Play Wall Street Is Missing.

While I advise investors to be careful not to be fooled by Nvidia’s hype, the same goes for Tesla.

That’s why, to replace this household name, I’ve put together another special report: Sell This, Buy That: The $24 Trillion Rise of Robotics. This report includes three companies to “Buy” instead of Tesla, all of which are set to capitalize on the emerging multi-trillion-dollar robotics industry.

Click here to learn how to access these “Sell This, Buy That” recommendations.

Regards,

Eric Fry

The post Don’t Be Fooled by Nvidia’s Earnings – Why It’s Still a “Sell” appeared first on InvestorPlace.

Big Tech’s soaring capex has traders worried that firms are overspending only to underdeliver – and that’s been weighing heavily on the AI trade. 

This is illustrated by the Global X Artificial Intelligence & Technology ETF (AIQ) – a strong proxy for the industry – which has been on a downward slope since late October.

That slump mirrored fading confidence in AI demand – until Nvidia (NVDA) changed the tone last night… and resuscitated the AI stock rally. 

The tech titan delivered a monster third-quarter earnings report – with even more monstrous guidance for Q4; the sum of which confirms that the AI frenzy is speeding up, not slowing down. 

Revenues rose 62% in Q3 and are expected to rise 65% next quarter. This is the first time since late 2023 that Nvidia’s sales growth rate has re-accelerated in two consecutive quarters.

After six straight quarters of slowing growth, the AI plumbing just hit the gas again – and the numbers tell the story…

Nvidia Earnings Overview: The AI Engine Is Accelerating Again

Let’s go over a quick rundown of Nvidia’s latest numbers so you can see just why we’re so bullish here:

• Q3 revenue: $57 billion, up 62% year-over-year (YoY) and 22% quarter-over-quarter (QoQ)
• Data center revenue: $51.2 billion, up 66% YoY and $10 billion sequentially
• Q4 guidance: ~$65 billion in revenue, up ~65% YoY at the midpoint
• Gross margin: ~73-75% non-GAAP – at this scale

We feel it’s important to highlight that this isn’t some tiny high-growth software start-up. Nvidia is running at a $200 billion-plus annualized revenue pace and still compounding north of 60%.

And growth is picking up steam. 

For the past six quarters, Nvidia’s sales growth rate had been slowing. Bears believed it to be “the beginning of the end.” But what this quarterly performance just proved is that AI demand wasn’t dying – it was digesting before its next leg up.

Now:

• Growth has re-accelerated to 62%.
• Management is calling for even faster growth next quarter at 65%.
• And that’s with essentially zero China data center revenue baked in. 

If you’re looking for evidence that the AI Boom is “slowing,” you won’t find it in Nvidia’s financials.

And that’s just from what we can see on the surface… 

The AI Boom Is Speeding Up, Not Slowing Down

Under the hood, the story is even more bullish than what the headline numbers suggest.

Cloud Providers Are Sold Out

On the Nvidia’s conference call, management said the clouds are sold out and that the GPU installed base – Blackwell, Hopper, and older Ampere – is fully utilized. 

Translation: there is no sign of hyperscalers slamming on the brakes. If anything, they’re still flooring it.

With current GPU capacity tapped, attention now turns to how far hyperscalers are willing to expand.

AI Capex Spending Is Surging

That full utilization is exactly why Nvidia now sees visibility into roughly $500 billion of Blackwell + Rubin revenue through the end of 2026 – and that number has been increasing as new AI factory deals get signed.

Meanwhile, external estimates now see AI infrastructure spending heading toward $3- to $4 trillion by 2030. 

If this were a bubble that was about to pop, we’d be seeing missed estimates, weak guidance, slowing orders, and contracting capex plans.

Instead, we’re witnessing beat-and-raise performance, re-accelerating growth, and bigger long-term capex envelopes.

The ‘AI Bubble’ Fear Just Got Debunked

A recent fund manager survey from Bank of America (BAC) said the ‘AI bubble’ is the No. 1 perceived tail risk, with ~45% of managers citing it. 

In effect, Nvidia’s response to Wall Street’s top fear was: ‘Appreciate the concern. See: 62% growth, 65% forward guidance, and sold-out clouds.’

Jensen Huang literally said he doesn’t see an AI bubble – he sees real, widespread demand across clouds, enterprises, and emerging “agentic” and physical AI use cases. And Nvidia’s numbers back him up.

What Nvidia’s Results Mean for AI Stocks

When Nvidia – the core infrastructure tollbooth of AI – is growing faster again, it sends one clear macro signal: The AI Boom is not ending but compounding.

We’re still early in three overlapping transitions:

Each wave adds a new layer of demand on top of the last one. That’s how you end up with a world where AI chips, clouds, power, magnets, and storage all become multi-trillion-dollar ecosystems…

Which brings us to the fun part: what to buy on the AI rebound.

Now, this is not an exhaustive list by any means. But here are some of the names we’d consider on an AI-stock rebound.

Nvidia – The Core AI Tollbooth

This is still the primary index fund of the AI Boom.

• 62% revenue growth.
• 65% estimated growth in Q4.
• 66% data-center growth.
• 73- to 75% gross margins.
• Sold-out clouds.
• Half-trillion-dollar product pipeline visibility.

Until those facts change, Nvidia remains the core AI holding.

AMD – The Fast-Growing Challenger

If Nvidia is the tollbooth, AMD (AMD) is the bypass lane that keeps getting bigger.

• Its MI300/MI350 roadmap is aiming for massive gains in AI inference – up to 35x improvement for future chips versus current gen.
• At its analyst day, AMD projected data center chip revenue reaching $100 billion and overall earnings more than tripling by 2030, implying ~35% annual growth.

As hyperscalers move toward a multi-vendor strategy, AMD is positioned to capture a big slice of incremental AI accelerator demand.

CoreWeave – The Specialized AI Cloud

CoreWeave (CRWV) is basically the Nvidia-as-a-Service company – a specialized AI cloud built on Nvidia GPUs.

• Q3 revenue grew 134% YoY.
• It has multi-billion deals with Microsoft (MSFT), OpenAI, and Meta (META) for AI infrastructure capacity, plus a big cloud capacity agreement with Nvidia itself.

Yes, there are financing and concentration risks. But if you want leveraged exposure to AI compute demand without buying a chip designer, this is about as direct as it gets.

Nebius – The Stealth AI Player

Nebius (NBIS) is a Yandex spin-off turned Western AI cloud, now cutting huge deals of its own:

• Spun out of Yandex to focus on AI cloud infrastructure.
• Signed a $19.4 billion AI infrastructure deal with Microsoft, supplying dedicated GPU capacity from a New Jersey data center through 2031. 
• Reported 355% revenue growth – and a $3 billion AI contract with Meta.

In other words: another hyperscale-adjacent GPU landlord directly riding the AI infrastructure wave.

Oklo – Powering the AI Grid

AI doesn’t just need chips. It needs enormous amounts of power provided 24/7.

That’s where Oklo (OKLO) comes in:

• Sam Altman–backed micro-reactor company focused on small modular nuclear.
• Signed a framework deal with Switch to supply up to 12 GW of nuclear power to data centers through 2044 – one of the largest corporate power agreements ever.
• Boosted its Aurora reactor design to 75 MW explicitly to meet AI data-center demand, and partnered with Vertiv (VRT) to co-design nuclear-powered, AI-optimized data-center infrastructure. 

If Nvidia is the brain of the AI era, Oklo is a candidate to be part of its circulatory system.

MP Materials – The Magnet Supplier for Physical AI

Every joint, AI-optimized fan, and EV-style drive unit in a humanoid robot needs rare earth magnets to function. That’s MP Materials‘ (MP) domain.

MP is:

• America’s only fully integrated rare earth miner + magnet manufacturer. 
• A key supplier of neodymium magnets used in EVs, smartphones, robots, and now increasingly data centers and AI hardware.

If you believe in physical AI – humanoids, warehouse bots, robotaxis – you definitely want exposure to the magnet supply chain.

Celestica – The AI Hardware Builder

Of course, someone has to actually build all the servers, racks, and systems that hold up the AI industry.

Celestica (CLS) has quietly become a ‘dark horse’ in this arena:

• Q3 revenue grew ~28%, with management raising its 2025 outlook on surging AI/hyperscaler demand.
• Hyperscalers now make up 77% of its Connectivity & Cloud Solutions segment, up from 51% in 2022. 

As AI server volumes explode, Celestica becomes a picks-and-shovels play on the physical build-out.

Seagate – The Storage Backbone of AI

After chips, clouds, and power, there’s still one unsung hero of the AI stack: storage. All those tokens and model checkpoints have to live somewhere.

• Seagate (STX) is shipping 30TB-plus hard drives to specifically meet the surge in AI data-center storage demand – with 40TB drives already sampling and 44- to 50TB on the roadmap. 
• AI data centers are creating a global HDD shortage, with backorders stretching out years and Street targets rising for both Seagate and Western Digital (WDC). 

If AI is a data engine, Seagate is one of the key beneficiaries of the storage bottleneck.

Bottom Line: Nvidia Earnings Signal AI’s Second Leg Up

Nvidia just did the one thing the bears didn’t want it to…

After six quarters of slowing, it showed that AI revenue growth is re-accelerating – and likely to keep gaining speed.

That’s not the profile of a bubble about to pop. That’s the profile of a structural boom grinding higher through the noise.

So, yes – we think this report will go a long way toward putting “AI Bubble” fears to bed, at least for a while. And if it sparks the rebound rally we expect, names like NVDA, AMD, CoreWeave, Nebius, Oklo, MP, Celestica, and Seagate are exactly the kind of AI infrastructure plays we want on our buy-the-dip list.

It is time to get positioned for the AI rally coming back to life.

That said, the center of gravity in Big Tech is shifting beneath our feet. The innovation race that once belonged to Silicon Valley is now being refereed in Washington, D.C., where the government holds the purse strings for AI infrastructure, chip exports, and the next generation of trillion-dollar breakthroughs.

So, don’t just watch earnings… watch where the influence is coming from. In the AI age, the winners won’t just build the best chips… they’ll build the closest ties with our government. Policy, power, and positioning now determine which companies get subsidized, which get throttled, and which are left behind.

Because of how critical this moment is, I jumped on camera to break it all down in a short video… you’ll see what’s changing, which stocks stand to benefit, and why this moment matters more than any single earnings report. 

Watch our special briefing here.

The post Nvidia Earnings Smash Expectations – and Prove AI Bubble Fears Wrong appeared first on InvestorPlace.

We often build these assumptions from our first experiences when learning something new — keeping your hands at “two and ten” while driving or leaving the house three hours before a flight so you don’t miss your plane.

These habits become little safety mechanisms we build into our routines. Over time, they turn into rules we follow without ever asking whether they still make sense.

This same pattern shows up when people enter the world of investing and trading.

Most traders stick to the tools and rules they learn first. Because most people start with stocks, they naturally inherit stock-trader rules.

Things like cutting losers quickly, avoiding any kind of averaging down, and using stops to protect yourself from downside risk all feel like universal truths. They work in the stock world, especially when you’re new, because stocks can have significant and unlimited downside.

But just like those habits I mentioned at the top, stock-trading rules don’t automatically translate when you step into a completely different environment. And nowhere is that more obvious than in options trading.

Different Trade, Different Rules

Options operate on a different foundation than stocks. The mechanics are different, the pricing is different, and most importantly, the risk structure is different. The “safety net” that feels comforting inside a stock-trader’s toolbox simply doesn’t fit a defined-risk vehicle like options. 

And when traders carry old habits into new territory, those habits often work against them.

Because here’s the truth — and I say this knowing it goes against most mainstream trading advice: I do not use stop-loss orders with options. At all. And I believe avoiding stops is not only safer — it’s more conservative. 

That may sound counterintuitive if you come from a stock-trading background. It might even sound reckless.

But for options? For volatility? For the asymmetric opportunities they create? For risk-defined trading?

Stops aren’t a safety net. Stops are a trap.

And today, I want to walk you through why stops sabotage options traders and why the market structure itself works against them. I’ll show you the simple, systematic framework I use instead that gives me more control, more consistency, and more durability in my trades.

What Professional Options Traders Actually Do

Professionals in the options world don’t lean on stop-loss orders the way stock traders do. This is something I emphasize whenever I talk about risk. 

When I was a market maker, we never used stops to manage exposure because stops introduce uncertainty into a product that already gives you perfect clarity about your maximum loss. 

Our job was to size positions properly, price volatility correctly, and let the trade play out unless something in the underlying thesis materially changed. 

That structure — predetermined risk, clear thesis, and no reactive exits — is the backbone of professional options trading.

So when I teach traders not to use stops, it’s not a contrarian stance or a personal quirk. It’s the same framework I learned on the floor, where the only way to survive was to control your own risk and never let normal volatility eject you from a position. 

ÃÛÌÒ´«Ã½ makers don’t get shaken out by beta moves, widening spreads, or morning flushes, and they certainly don’t hand that control over to the market. They build trades with fixed risk and stay in them until the thesis breaks — and that’s the structure I bring into every strategy I teach.

The Advantage of Defined Risk

I know that trading can feel fast when you’re just getting started. Until you get your sea legs, it’s hard to know what’s normal market noise and what actually matters. 

One of the most important lessons you can learn about trading options is that sometimes options expire worthless, even when your thesis is right. That’s not a personal failure — that’s the nature of defined-risk trading.

According to a Chicago Board Options Exchange (CBOE) study, more than two-thirds of all options expire out of the money. That sounds scary, but like any risk worth taking, it becomes far less scary once we understand how to manage it.

That’s exactly why I hammer on the importance of deciding how much you’re willing to risk before you ever enter a trade. When the risk is predetermined, nothing the market does can take you out of the game early unless you let it.

When you buy an option, your maximum possible loss is defined the moment you enter the trade. If you pay $300 for a contract, the worst-case scenario is losing $300. 

There’s no scenario where that loss expands because of a fast-market fill, a gap down, or a liquidity vacuum. Options offer fixed, non-expandable risk.

That alone makes stop-loss orders unnecessary.

But more importantly, stops get traders into trouble because they respond to the price alone and not the thesis.

When we enter a trade, it’s because we have conviction about the idea, the catalyst, and the story behind the move — not because we expect the price to march in a straight line the next morning.

A price drop doesn’t mean your idea is wrong — more often than not it means the market is doing what markets do. 

Stops don’t know the difference, and they kick you out anyway.

This is where many just starting out stumble — they confuse motion with meaning. ÃÛÌÒ´«Ã½s wiggle, shake, lurch, and breathe. Stocks get dragged down because the index sells off. Volatility widens bid/ask spreads. Beta pushes everything lower at once. 

These events aren’t a referendum on all of the hard work that went into your research.

Why Stops Get You Out of Trades for the Wrong Reasons

When we’re trading options, we’re not trading one tick or two ticks of price action. We’re trading an idea — a shift in a business model, a long-term catalyst, a value disconnect, or a wave of unusual options activity from big money. 

If AMC is transitioning to a subscription model, or if a UOA spike signals institutional conviction, that thesis doesn’t vanish because the S&P dropped for a day. 

The idea is still valid, even if the price stumbles for reasons unrelated to the trade.

But this is exactly where stops work against you. They respond to short-term movement, not long-term logic. 

They treat every pullback as a verdict on your research, even when the move is just beta dragging everything down together. The result is that you can get stopped out of a strong, well-reasoned position for no reason other than market noise.

In the case of our AMC trade, the stock dipped right after we entered. But the drop had nothing to do with AMC’s story — it was simply the index pulling names down in unison.

Once the market stabilized, AMC stabilized. And the trade continued to follow the thesis we outlined from there. A stop-loss would have thrown you out of a perfectly valid idea long before it had a chance to work.

This is why I underline this lesson so strongly: stops allow the market to dictate your decisions. 

My approach — the approach I learned as a market maker — asks traders to control their own decisions. When the thesis drives the exit instead of the volatility, you trade with discipline and conviction instead of emotion.

Fixing Our Risk, One Slice at a Time

But just because we’re not using stops doesn’t mean we’re ignoring our risk — far from it.

Instead of stops, I use a structure that is far more predictable: a fixed risk budget and laddered entries. 

Allow me to explain.

Before I enter a trade, I decide exactly how much I’m willing to risk on the entire idea. If the number is $1,000, then $1,000 is the most I can lose — not a penny more. That decision is made ahead of time, calmly and logically.

Once that number is set, I divide it into three equal pieces — so a $1000 trade would be broken up into tranches (that’s French for “slice”) of about $333 each. 

We enter the first tranche at our initial price. If the stock moves against us, we add the second tranche. If the pullback continues, we add the third. Some traders refer to this as “laddering.” 

This creates a lower average cost, giving us more time in the trade, and eliminates the frantic feeling of being “wrong” on our timing simply because the price moved. 

Laddering doesn’t mean we’re averaging down blindly. It’s a structured way of deploying a predetermined risk amount. We’re not adding risk — we’re allocating our predetermined risk.

Instead of feeling threatened when a trade moves against us, we see pullbacks as an opportunity to improve our position.

This isn’t a reaction, but rather following a plan we built ahead of time. And because options cap our risk, the plan cannot expand beyond what you approved.

Conclusion: Structure, Conviction, and the Path Forward

Everything we’ve covered in this piece leads to a simple truth: success in options trading doesn’t come from reacting to every wiggle in the market. It comes from structure. It comes from discipline. And it comes from the confidence to stick to a plan we built long before the volatility tried to shake us out.

Options give us a rare advantage in the trading world — the ability to define our maximum risk on day one and keep total control over our decisions. When we choose our size intentionally, ladder our entries, and commit to our thesis instead of the noise, we stop handing the steering wheel to the market. We trade with clarity instead of fear, patience instead of panic, and logic instead of emotion.

This approach isn’t about perfection. It’s about staying in the game long enough for our edge to play out. Some trades will expire worthless — that’s part of it. Some trades will feel uncomfortable before they work.

But when we keep our size appropriate, honor our plan, and stay focused on the bigger opportunity rather than the minute-to-minute fluctuations, we put ourselves in the best possible position to succeed.

If this way of thinking feels different from what you’ve been taught — good. It should feel different. Most traders never get the chance to unlearn the habits that hold them back.

They never get exposed to a risk-defined system. They never get taught how professionals actually build trades, manage exposure, and survive volatility.

And that’s exactly why I created the Masters in Trading Options Challenge.

The Challenge is where we take everything you’ve learned in this piece — fixed risk, thesis-driven exits, laddered entries, defined-duration trades, and emotional discipline — and put it into practice in a structured, step-by-step environment. For two weeks, we walk through the foundations of real options trading the way I learned them on the trading floor. You’ll learn exactly how I think, exactly how I build trades, and exactly how I manage both the winners and the losers.

If you’ve ever wanted to trade options with more clarity…
If you’ve ever wanted a system that keeps you calm when the market isn’t…
If you’ve ever wanted to stop guessing and start understanding…

…then the Challenge is the perfect next step.

I’d love to see you inside. Let’s trade with intention.

Let’s trade with structure. And let’s do it together — the right way.

Join the Masters in Trading Options Challenge and take the next step in becoming a disciplined, risk-defined trader.

Remember, the creative trade wins,

Jonathan Rose

Founder, Masters in Trading

The post Why I Don’t Use Stop-Loss Trading Options — And Neither Should You appeared first on InvestorPlace.

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By the time you’re reading this, Nvidia (NVDA) earnings will likely be out.

How the numbers come in – and more importantly, guidance for the quarters ahead – will be pivotal.

After several weeks of pressure on tech and AI stocks, tonight’s results have the potential to either stop and reverse the slide…or accelerate it if Nvidia shows any sign of slowing demand or softer AI momentum.

We’ll be watching the numbers and the after-hours reaction closely. And of course, we’ll break it all down for you in tomorrow’s Digest.

For now, let’s turn to the bigger structural question behind the AI boom. And on that note…

I’m waiting for someone on Wall Street to highlight this, but so far, no one is touching it…

AI may be fantastic at replacing workers… but AI is terrible at replacing consumers.

It’s the paradox hiding beneath this groundbreaking technology. And when you follow the money far enough through the AI economy, it raises uncomfortable questions about the AI narrative.

Stepping back, in yesterday’s Digest, we walked through the warning about private credit from Louis Navellier, editor of Growth Investor, and Jeffrey Gundlach, CEO of DoubleLine Capital.

But the risk in private credit is just a small part of a bigger, interconnected story. Today, let’s begin to unravel this story by picking up where we left off, exploring how the AI boom is intertwined with the leveraged lending system.

Then we’ll redirect to look at the other end of that pipeline – the revenue side – and explore what happens when we forget that while AI is great at cutting costs, it’s terrible at buying products – and that’s a massive problem.

As we’ve been tracking in the Digest, the infrastructure behind artificial intelligence requires truly staggering sums of money. This is a historic scale-up of global computing infrastructure that will require trillions of dollars over the next decade.

Some of the largest projects in the world today – such as Meta’s $27 billion Hyperion data center in Louisiana – are being financed not through traditional bank loans but through private credit lenders. And Meta is hardly alone. As the hyperscalers pursue their AI ambitions at full speed, they’ve increasingly been tapping private credit.

The borrowing is justified by one big underlying assumption…

Today’s massive up-front spending will lead to tomorrow’s avalanche of profits from AI initiatives.

So far, few people have raised concerns about this because the entities doing the spending – basically, the Magnificent Seven stocks – are the most cash-rich corporations in history.

Now, because the infrastructure spending is very real, the companies receiving that money – Nvidia (NVDA), Broadcom (AVGO), chip suppliers, data-center builders – are reporting very real, very large profits. To many investors, this confirms the AI boom is “real.”

But infrastructure supplier profits are not the same thing as long-term ROI for the hyperscalers themselves. The massive cost side of the AI equation is clear. The revenue side is still extremely blurry.

On that note here’s Axios from last month:

It remains unclear how all that debt will be paid back: AI is not making any money (yet), and each new chip cycle brings costly upgrades.

This financing binge could pop the AI bubble.

Which brings us to the first uncomfortable part of the story.

What do you pay for AI today?

For ChatGPT Plus, Claude Pro, Gemini Advanced, and so on, maybe $20 a month? Or maybe you don’t even pay.

Now, hyperscalers do not expect $20 chatbots to cover the cost of their trillion-dollar infrastructure investments. They expect the real payoff will come from enterprise AI adoption – corporate customers paying tens of thousands of dollars a month (or more) to integrate AI across their entire workflows.

But here’s issue #1…

So far, even when you include the early enterprise revenue, the revenues coming in are tiny compared to the capital going out.

From a different Axios article:

MIT researchers studied 300 public AI initiatives to try and suss out the “no hype reality” of AI’s impact on business…

95% of organizations found zero return despite enterprise investment of $30 billion to $40 billion into GenAI, the study says.

The “real” AI value proposition – the one after this infrastructure buildout phase – is murky at best. Revenue remains tame compared to the firehose of spending. So, unless AI monetization grows far beyond today’s numbers, the math becomes increasingly strained.

And remember, because a meaningful portion of the buildout is financed through private credit, any revenue disappointment doesn’t just affect hyperscaler earnings. It could feed back into the credit system, creating a domino effect of pain:

• If AI spending slows, liquidity tightens…
• If liquidity tightens, refinancing becomes harder…
• If refinancing becomes harder, capex slows…
• Lower capex leads to slower earnings growth…
• Slower earnings growth drags down the market’s valuation multiples…
• Lower market valuation multiples ding stock prices…
• Lower stock prices create panic in Upper-K investors who sell, accelerating the unwinding of the wealth effect

I’m not predicting a collapse. I’m recognizing that a highly leveraged boom assumes highly reliable future cash flows – but those cash flows are not a certainty.

Now, let’s pivot to issue #2 – the deeper, more complex question that almost no one wants to confront…

As noted above, the hyperscalers don’t plan to make trillions of dollars from chatbots. Rather, they’re banking on million-dollar contracts with Fortune 500 companies.

But that thesis rests on some very large assumptions. Here are three:

• The enterprise adoption will be enormous
• The AI tools that companies buy will generate measurable, solid ROI
• AI won’t be commoditized into a low-margin utility like cloud storage or broadband.

All possible – but not guaranteed.

As of today, outside of the companies on the receiving end of the hyperscaler firehose of money, most businesses experimenting with AI still can’t show a clean bottom-line return.

Yet even if those assumptions do play out exactly as the bulls expect, we run straight into an even bigger, more foundational issue – the one that surfaces when you follow the money one layer deeper:

Where do the enterprise customers get the revenue to pay the hyperscalers for all this AI?

I’m talking big picture – across the next decade.

When you trace that revenue pathway back to its origin, you land in the same place every time…

The U.S. consumer.

And that’s where today’s closed-loop economy may come back to haunt us.

The bullish narrative around AI’s enterprise value focuses on cost savings – and those savings are real. AI doesn’t demand raises. It doesn’t need health care. It doesn’t go on strike or take vacation…

From a corporate cost structure standpoint, AI is an efficiency dream.

But there’s a problematic flip side…

AI doesn’t buy anything.

In other words, AI doesn’t drive consumption – and consumption is still nearly 70% of U.S. GDP.

So, let’s follow a new potential doom loop:

• If AI reduces the need for human workers in large enough numbers, we are implicitly reducing wage income for a significant portion of consumers…
• If consumer income weakens, consumer spending weakens…
• If consumer spending weakens, corporate revenues weaken…
• If corporate revenues weaken, enterprise software budgets weaken…
• And if enterprise budgets weaken, cloud and AI spending weakens – the very spending hyperscalers depend on to justify their infrastructure.

This ties into the “closed-loop economy” we’ve been discussing: the cycle in which AI boosts productivity, companies need fewer workers, profits rise, more money flows to AI, and even fewer workers are needed – all while the consumer base becomes less central to economic growth.

“But Jeff, I remember a recent Digest when you wrote that the top 10% of American earners were spending as much as the rest combined! You’re being inconsistent!”

That stat is true – but it doesn’t apply evenly across all categories of the economy.

Yes, the Upper-K consumer can support high-margin discretionary spending – travel, restaurants, even big-ticket items like homes and cars. In those areas, one wealthy household can spend as much as several middle-income households.

But there are enormous parts of the real economy where demand cannot be concentrated among the top 10%.

The wealthiest Americans can’t eat ten meals a day… or buy forty times the amount of deodorant, detergent, or toothpaste… or pay for thirty streaming subscriptions…

Bottom line: Wealth can concentrate – but consumption can’t.

Let’s be measured…

History gives us plenty of reasons for optimism.

Technological revolutions have a way of creating entirely new job categories no one could have predicted…

The top tier of U.S. consumers – the “Upper K,” as I often refer to them – has enormous spending power and continues to anchor demand…

Governments can soften transitions through transfers, taxes, and safety nets…

And the global middle class remains a massive and growing consumer base for U.S. companies.

But…

AI is different than past technological breakthroughs. Its ability to replace – well, just about all of us – creates a fundamentally different type of technology adoption curve. It’s one that shifts the balance between labor, capital, and consumption in ways we need to monitor carefully.

This is precisely why our macro expert Eric Fry, editor of Fry’s Investment Report has been focused on what he calls “AI infrastructure plays with pricing power” – companies that can maintain margins even as AI commoditizes.

This is a lengthy Digest, so I won’t go into all the details, but to help investors navigate what to sell – and where to reinvest profits – Eric recently released a “Sell This, Buy That” research package.

It lays out which AI (and non-AI) plays still have the earnings strength to thrive in today’s AI economy. You can see three tickers – free of charge – in Eric’s special report here.

Despite the long-term issues I’ve highlighted today, the next 12 to 18 months or so are likely to be a period of booming profits for AI infrastructure companies.

Hyperscalers have immense resources and powerful incentives to continue expanding. Capex pipelines are massive and growing. AI infrastructure orders are accelerating. And many businesses are in the early stages of exploration, which tends to drive continued spending.

So, this is still a moment of opportunity – even as we keep an eye on the underlying structural red flags out on the horizon. And this brings us to our hypergrowth expert, Luke Lango, editor of Early Stage Investor.

Luke has spent the past several months in Silicon Valley meeting with the engineers and founders behind the next AI wave.

His conclusion is that we are entering what he calls the “Hyperscale Revolution,” a period in which digital-first companies can scale revenues exponentially without physical assets limiting their growth. Think early Shopify or Copart – but now amplified by AI.

Luke believes one small company (in a completely unexpected sector) could become the next “Amazon of its industry” as AI reshapes every corner of the economy.

We’ll have more on that company from Luke next week. This is just a heads-up to keep your eye out.

The explosion of AI capex – much of it financed through private credit – is real, spectacular, and enormously profitable for the companies supplying the infrastructure.

And despite our recent jittery market, the next 12–18 months could continue to deliver outsized gains as the hyperscalers race to build the digital backbone of the next era.

But long-term profitability depends on something we seem to be forgetting…

A healthy, well-funded consumer.

Bottom line: AI can automate, optimize, and replace – but it cannot spend.

So, as our economy leans harder into automation and robotics, funded by massive spending and heavy private credit borrowing, perhaps it’s time we ask an uncomfortable question…

With AI, are we unwittingly sawing off the economic tree branch that we’re sitting on?

Have a good evening,

Jeff Remsburg

The post AI’s Flaw that Could Sink the Hyperscalers appeared first on InvestorPlace.

¡Salud! Santé. Na zdrowie. Cheers!

Don’t worry; you’re not stuck on Disneyland’s “It’s a Small World” ride. Although when listing various toasts “to health,” it could feel like it.

Nearly every language has its own version of this sentiment. And these proclamations often accompany raising a drink or clinking glasses. But no matter the country, the wish is globally the same: goodwill.

This year, the healthcare industry could use its own toast “to health.”

In a stock market packed with richly priced companies, the pharmaceutical sector has become a conspicuous outlier. Investors have been rushing to the stage to cheer AI rock stars like Nvidia Corp. (NVDA) and Alphabet Inc. (GOOGL), while dismissing most pharma names as has-beens.

Ironically, in a market obsessed with AI stocks, few investors seem to care how extensively the biopharmaceutical industry has integrated AI technologies.

That oversight is exactly what creates opportunity.

Away from the crowds and the blinding lights, drug companies are quietly entering a period of renewed strength, much like they did in the early 1990s.

That’s why I’m raising a glass to an overlooked biopharmaceutical company with the hidden capacity to deliver outsized gains.

Below, I’ll share some details on this company… and where you can find more drug stocks that possess market-beating potential.

But first, let’s take a closer look at the health of the healthcare sector, and why it’s primed for opportunity…

A Once-in-a-Generation Discount the ÃÛÌÒ´«Ã½ Is Ignoring

Valuations across the healthcare sector have tumbled to record lows relative to the S&P 500. You’d have to go back more than 30 years to find valuations this depressed.

Consider Pfizer Inc. (PFE) as an example, which is trading at a record-low 70% discount. Put differently, investors are now paying about 70% less for a dollar of Pfizer earnings than for a dollar of earnings from the S&P 500 as a whole.

This is the largest discount since 1993 – right before the start of a powerful bull market for healthcare stocks. Over the next six years, PFE soared more than 1,000% over the S&P 500 index.

In hindsight, that opportunity should have been obvious. The company was entering a new growth phase, producing profit margins twice as high as those of the S&P 500.

Today, the fundamentals look even stronger than they did in that 1994 trough. Pharma’s cash flows are on the rise, gross margins are still roughly double the S&P’s, and the sector is integrating AI in ways that will likely make drug development faster, cheaper, and more precise.

As an added plus, the sector offers a healthy 3% dividend yield – more than double the S&P 500’s.

For patient investors, the setup is enticing: a sector priced for disappointment, despite fundamentals that point in the opposite direction.

One company is a clear example of this disconnect. Its valuation suggests stagnation, yet its operations tell a different story: accelerating growth in newer therapies, a deepening pipeline across major disease areas, and a strategic embrace of AI that should make future innovation faster and more predictable.

Here are the details…

Gaining Momentum at a Discounted Price

The company I’m referring to is Bristol-Myers Squibb Co. (BMY).

It is one of the largest pharmaceutical companies in the world, with a number of drugs that treat diseases in immunology, cardiovascular, and oncology.

Plus, I believe this company possesses enormous potential to generate robust profit growth from its AI initiatives.

That means that Bristol-Myers is no longer just a drugmaker. It is becoming a digital-first biomedical company.

CEO Chris Boerner put it plainly in the company’s latest earnings call: “We are integrating digital technology and AI across the company to drive efficiency and speed in how we discover and develop medicines.”

The impact is already visible. Trials start sooner. Patients are matched more efficiently. Data quality improves.

In drug development, speed lowers cost and higher-quality data increases the odds of success. Bristol-Myers is applying AI to improve both.

Boerner also remarked, “Q3 was another strong quarter, reflecting focused execution across the business as we continue to make progress on our plan to position Bristol-Myers Squibb for long-term sustainable growth.”

The results backed him up.

The company’s “Growth Portfolio” – the group of newer drugs that must replace its aging blockbusters – grew 17% year over year. Opdivo and Qvantig, key cancer immunotherapies, continued their steady advance.

Given these positives, the company raised its midpoint revenue guidance for the year from $46 billion to $47.75 billion and bumped its earnings-per-share guidance to $6.50. Free cash flow is rising sharply, and net debt continues to decline.

Bristol-Myers trades for about seven times forward earnings – one-third of the S&P’s multiple – and yields more than 5%, backed by strong free cash flow and an A-rated balance sheet.

Those numbers suggest a tired, no-growth company, yet its business is clearly regaining momentum. Bristol-Myers is not trying to reinvent itself; it is simply executing, steadily and visibly, in ways that the market has yet to appreciate.

But I believe the stock still offers significant upside.

And it’s not the only healthcare play that offers significant, market-beating potential…

Two Healthcare Winners Already Proving the Bears Wrong

I currently recommend two drug stocks to my paid members at Fry’s Investment Report. Both have advanced nearly 50% year-to-date, compared to the S&P’s 13% gain.

I consider these companies to be new-and-improved “Buys” right now. That is why I spotlighted them in the November monthly issue of Fry’s Investment Report that I released just yesterday.

You can learn how to access the names of these healthcare recommendations here.

As I mentioned, Wall Street has its attention squarely on dazzling AI darlings like Nvidia, which releases its latest quarterly earnings report later today. (I’ll share more on that tomorrow.)

That means that the healthcare sector’s current discounted valuation, in combination with its considerable long-term growth potential, offers compelling opportunities in today’s richly priced market.

And to that I say: Cheers!

Regards,

Eric Fry

The post The Healthcare Discount Too Big to Ignore appeared first on InvestorPlace.

Right now, lithium is six feet under – entombed by disappointing electric vehicle forecasts, a supply glut, and an entire industry that overshot the runway. The metal that was supposed to power the EV revolution became a cautionary tale; a reminder that hype and reality don’t always align.

Yet, while everyone was writing lithium’s obituary, the story changed completely.

As AI proliferated across the globe, data centers did, too – causing significant stress to the power grid. And the grid has responded by increasingly turning to utility-scale batteries to fulfill outsized power demand. 

Indeed, maybe the catalyst wasn’t electric vehicles at all… but artificial intelligence.

Lithium is now being woven into the infrastructure of the AI revolution – not as a supporting player, but as a critical enabler.

This is the Lithium Boom 2.0: deeper, more structural, and potentially far more lucrative. 

And it has all the makings of 2026’s breakout AI trade that nobody sees coming.

Lithium 1.0: From Hype to Hangover

Between 2020 and ’22, lithium was a rock star on Wall Street. 

EV sales were growing 50%-plus per year. Automakers were panic-signing long-term offtakes, with analysts warning about shortages. Spot prices went vertical. Lithium miners performed like meme stocks but with strong fundamentals.

Then… the hangover.

Central banks around the world hiked interest rates. EV demand growth decelerated. Chinese EV makers were embroiled in a price war. And all the supply that was funded during the boom began entering the market.

As a result, prices collapsed, sentiment evaporated, and lithium went from a can’t-lose EV megatrend play to “why does this still exist in my portfolio?”

Most investors’ lithium outlook is still anchored in this EV-bubble-and-bust narrative.

And that’s exactly why this setup is interesting…

Because the fundamentals are evolving – but the narrative hasn’t caught up yet.

When Lithium Becomes a Part of the AI Power Story

There’s a simple connection it seems most people aren’t making:

• Ever-growing levels of AI compute is massively increasing data center power demand.
• That’s forcing utilities and hyperscalers to restructure the grid with huge amounts of energy storage.
• And the workhorse technology for that storage? Lithium-ion batteries.

In other words… the more AI we deploy, the more electrical stress on the grid, the more batteries we need. And the more batteries we need, the more lithium we consume.

Now picture where that demand is coming from – AI’s industrial heart: data centers. Massive, always-on, power-hungry facilities that can’t afford a single flicker. That’s a perfect use case for:

• Utility-scale battery farms
• On-site data center battery systems for backup and smoothing
• Behind-the-meter storage that lets hyperscalers arbitrage prices, shave peaks, and survive the next heat wave or storm

This is the first big leg of Lithium 2.0 demand. And we’re very early in that transition. 

Most investors are still thinking: ‘Lithium = EVs. EV growth slowed = lithium bad.’

The emerging reality is closer to: ‘Lithium = EVs plus AI-driven energy storage. EVs are a little slower, but the grid and data centers are picking up the slack.’

If that’s true – and the data is increasingly suggesting as such – then the EV bust may have created one of the best entry points into a still-growing lithium demand curve.

The Next Act: Lithium for Physical AI

The second leg of Lithium 2.0 is more speculative in the short term but potentially enormous in the long term – its role in Physical AI.

As the robotics industry continues to grow, AI is increasingly moving from the cloud to the real world via robotaxis, warehouse and delivery bots, drones, industrial cobots, AI glasses and wearables… even humanoid robots like Tesla‘s (TSLA) Optimus or Unitree‘s various humanoid offerings. And each requires a battery pack to function as intended.

Individually, none of these categories rival the energy demand of EVs or grid storage in the next one to three years. A humanoid robot might use a 2–3 kWh pack – a lot less than a 70 kWh EV. By comparison, AI glasses’ battery packs are microscopic.

But that misses the point.

This isn’t about any one category. It’s about the stack: Robotaxis + warehouse bots + delivery bots + industrial cobots + humanoids + whatever else we dream up next.

In 2026, this shows up as a narrative tailwind and a fast-growing but still small-volume contributor.

By the 2030s, it could become a meaningful second demand pillar on top of EVs and energy storage systems (ESS) – especially if humanoids and logistics bots hit scale.

We don’t need that whole physical AI future to materialize immediately in order to justify higher lithium prices. We just need the forward expectations to reset around lithium being more than just an ‘EV metal.’

And that’s exactly what’s starting to happen.

Busted Narrative, Emerging Tailwind

Why could Lithium 2.0 break out around 2026? Because the setup checks every box for a major rotation:

• Sentiment is still broken. Investors remember the crash and the false ‘shortage forever’ story. Most have mentally written lithium off – which is exactly when value quietly rebuilds.
• AI-driven demand is early but real. Hyperscalers are planning gigawatts of new data-center load. Utilities are scrambling for grid flexibility, and battery makers are scaling both EV and stationary storage lines. Even modest AI-energy demand shifts the math: lithium is diversifying.
• Supply discipline is back. Post-crash, projects were delayed or shelved, and capex slashed. If AI storage demand ramps into that backdrop, today’s ‘oversupply’ can flip to shortage fast.
• Policy adds another push. Governments want secure, local, AI-proof supply chains. Lithium sits squarely in that mandate across the U.S., Canada, and Australia.

Together, those forces mark the early innings of a new demand cycle: one driven less by EV hype and more by the AI Energy Crunch and Physical AI buildout.

How to Trade the Lithium 2.0 Rotation

Now, it’s important to note that the Lithium Boom 2.0 won’t be a smooth glide higher. 

This is a commodity cycle, not a near-guaranteed software-as-a-service (SaaS) ramp. Expect volatility, headlines about oversupply, and alternative battery news to spook the tape. But zoom out:

• Big picture: Lithium’s story is evolving from single-thread EV exposure to a multi-leg EV + ESS + AI grid thesis – raising and diversifying long-term demand.
• Cycle check: Prices crashed, capex collapsed, sentiment died. That’s what bottoms look like before a new narrative takes hold.
• Strategy: Accumulate into fear, trim into euphoria. Focus on producers with real assets, scale, and strategic locations governments need online.

Lithium 1.0 was the EV revolution. Lithium 2.0 is the AI-energy revolution, where data centers, robots, and electric grids all compete for limited power. 

If 2023 was all about GPUs and 2025 was centered around rare earths, 2026 could be remembered as the year lithium became the next great AI trade.

Though, it’s not the only lucrative AI play flying under many investors’ radar…

Silicon Valley is known to be a global hub of tech and innovation. It’s the place some of the most powerful companies in the world call home – Apple (AAPL), Alphabet (GOOGL), Meta (META) – as well as a wealth of VC and startups known for rapid scale and ingenuity. 

And this crossroads of tech and talent is exactly where I’ve spotted the most innovative AI-driven company I’ve ever seen – one that’s using AI to disrupt a massive $1.9 trillion industry that hasn’t changed in decades.

Yet, it’s trading for less than $10… meaning it could be the next 1,000%-plus AI winner.

Find out how to back the next Bezos or Musk – without being in Silicon Valley.

The post Everyone Buried Lithium – Right Before the Real Boom Began appeared first on InvestorPlace.

Crypto got smoked last week.

That’s the quick recap from our crypto expert, Luke Lango, editor of Ultimate Crypto, in his weekend update.

The pain continues as I write on Tuesday. Earlier today, the grandaddy crypto dropped below $90,000, its lowest level since April’s “Liberation Day” fallout (it’s back up to $92,000 as I write).

According to Luke, the biggest red flag for investors is how Bitcoin has fallen below its 50-week moving average, “a level that, in past cycles, has often marked the end of the party.” Excluding the COVID anomaly, every meaningful break-and-close below the 50-week moving average with the slope rolling over has marked the end of a boom cycle.

But while recent price action points toward a new bear market, Luke presents an alternative, more hopeful readthrough:

Pull the camera back and you see something different: this wasn’t a fundamentals event. It was a flows event.

• Traders de-risked into big macro catalysts (CPI, Fed path, Treasury issuance).
• Systematic and momentum strategies sold because key levels broke.
• Levered longs got auto-liquidated into thin order books.

That cocktail always feels existential in the moment.

It’s also exactly how mid-cycle resets usually look.

Luke suggests that a dip below the 50-week MA being a harbinger of doom may not be as accurate today because the structure of Bitcoin ownership and trading has fundamentally changed.

Whereas Bitcoin’s cycle used to reflect…

• Retail-heavy, ETF-less market
• One massive blow-off top
• A long, brutal selloff

Compare that to today, when:

• ETF and institutional flows matter more than activity from retail investors
• Illiquidity is much higher because of this greater institutional ownership
• We had a cycle where on-chain “top signals” never fired

Back to Luke for the takeaway:

In short, we may be trying to apply an old-world heuristic to a new-world regime.

That doesn’t mean the 50-week break is meaningless. It does mean we should treat it as: A major risk signal, not an automatic “cycle is over” siren.

Caution.

Luke tells crypto investors not to aggressively add to any positions – and especially not with leverage. We must respect today’s broken trend and technical weakness.

But he advises not to go full bear:

We are not in “sell everything, go to cash, never speak of this again” territory.

But if weakness remains, when will “full bear” be appropriate?

Luke points toward four structural signals breaking at the same time:

If these signals materialize, Luke says the playbook shifts to capital preservation: stick with only what you’re truly willing to hold through a secular downtrend.

We’ll continue tracking this and report back.

Speaking of systemic risks worth watching…

So says “Bond King” Jeffrey Gunlach, CEO of DoubleLine Capital.

In a recent CNBC interview, Gundlach said that while many assets are wildly overpriced, the real trouble spot isn’t flashy AI stocks – it’s the rapidly ballooning private-credit market.

If this sounds familiar, it’s because we’ve highlighted this growing risk in the Digest several times over the last year. Gundlach’s comments only add more weight to the fault lines we’ve been tracking.

To make sure we’re all on the same page, “private credit” refers to loans made outside the traditional banking system. After regulators tightened lending standards in the aftermath of the 2008 financial crisis, non-bank lenders stepped in – and the industry exploded from roughly $300 billion in 2010 to trillions today.

For borrowers, private credit offers flexibility when banks say no. For lenders, it promises high yields – often around 10% to 11%. But those juicy payouts come with a catch: leverage.

As legendary investor Louis Navellier has repeatedly cautioned, many private-credit players are stacking leverage on top of already leveraged borrowers. That’s a dangerous recipe that we’ve seen before.

Bloomberg recently noted that over 40% of private-credit borrowers ended 2024 with negative free cash flow, a sharp increase from 2021.

Meanwhile, two recent bankruptcies – First Brands and Tricolor – have already forced portions of Wall Street to pull back.

Last month, JPMorgan CEO Jamie Dimon summed it up bluntly:

When you see one cockroach, there are probably more.

Gundlach just echoed that same fear. He warned that lenders are making “garbage loans,” just like the pre-2008 subprime era, and he’s especially concerned about the push to package these loans and sell them to retail investors who expect easy withdrawals from fundamentally illiquid assets.

If redemptions surge, these funds could be forced into fire-sale losses.

In our June 12, 2025, Digest, I profiled the risks in the private credit sector and highlighted Blue Owl (OWL) as a stock that deserved close scrutiny due to its significant exposure to private credit lending.

OWL is now down 29% since that Digest. For part of the reason why, let’s jump to this story yesterday from Bloomberg:

Blue Owl Capital Inc.’s shares have fallen to their lowest level since December 2023, after the alternative asset manager restricted investors from redeeming capital from one of its oldest private credit funds…

In short: A fund with substantial private-credit exposure (via Blue Owl) is now limiting liquidity (no redemptions) and asking investors to take a haircut by converting into a vehicle whose shares already trade at a meaningful discount.

For more, let’s go to Louis’ Growth Investor Flash Alert from this morning:

Blue Owl has frozen redemptions on one of their private credit funds. I’ve been warning about this for some time.

They have one fund open and one fund closed. This is causing a lot of concerns…

This private credit issue could cause the Federal Reserve to cut up to a full percent. It’s a serious thing because the private credit industry works with the banking industry.

To be clear, we’re not calling for an imminent or wider blow-up. But risks are growing, and as the private-credit machine grows bigger, the more significant the potential ripple effects across the economy.

We’ll dive deeper into the biggest potential ripple of all – private credit and the AI buildout in tomorrow’s Digest. But for now, let’s move on to a sector that Louis is very bullish on today…

If you’re less familiar, in Accelerated Profits, Louis zeroes in on high-growth stocks poised for rapid price appreciation. He uses his proprietary stock-rating system to focus on top-tier stocks exhibiting exceptional fundamentals and strong momentum.

Louis has had 11 gold-related stocks on his Accelerated Profits “Buy List” recently. And yesterday, he added the twelfth.

I can’t reveal the specific stock, but here’s Louis’ logic from his Buy Alert:

Over the past few weeks, gold prices have consolidated after setting new all-time highs.

Given the more than 50% run in gold prices this year, some consolidation was necessary – but I think the dip is setting gold up for its next leg higher.

In fact, I was recently asked where I see the price of physical gold over the next two to five years.

The simple answer is: Up to new record highs.

Louis goes on to highlight his favorite economist, Ed Yardeni, who recently referred to gold as the new Bitcoin. The idea is that while Bitcoin was recently attracting significant investor interest as a safe haven amid geopolitical uncertainty, gold has regained its preeminence in that role (which it held for centuries, long before Bitcoin arrived).

By the way, Yardeni predicts gold will hit $5,000 per ounce within a year – and could potentially breach $10,000 by the end of the decade.

Bottom line: If you’re underweight gold, you might want to reconsider.

For more on how to access Louis’ specific gold plays in Accelerated Profits, click here.

In last Wednesday’s Digest, I argued that confidence has quietly become the critical fuel of today’s brokerage-led economy. If people feel richer thanks to AI-goosed portfolios, they’ll feel confident and spend more due to the wealth effect…but if that wealth effect reverses, the entire loop can unwind just as quickly.

This is why a new chart from predictive-markets platform Kalshi on Saturday caught my eye…

Kalshi reported that searches for “AI bubble” have just hit an all-time high – a spike you’ll see in the chart below.

In a market dependent on sentiment, what investors feel (and fear) is nearly as important as fundamentals.

So, if enough investors begin to believe we’re in a bubble that is bursting, whether that belief is accurate becomes almost irrelevant. The mere expectation of a downturn can trigger selling…which lowers asset values…which slows spending among upper-K households…which pressures earnings…which ultimately pushes stocks lower still.

It’s the exact feedback loop we warned about – the wealth spiral in reverse.

I’m not saying this is happening yet. But moments like this remind us how quickly what seemed strong and bullish can become fragile and bearish. And in a Reflexive Economy (as I called it in last week’s Digest), shifts in narrative can matter just as much as shifts in numbers.

We’ll keep you updated on all these stories here in the Digest.

Have a good evening,

Jeff Remsburg

The post Bitcoin Cracks $90K – Is the Cycle Over? appeared first on InvestorPlace.

If this keeps up for much longer, we’re in danger of ending the month in negative territory.

That may not sound like a big deal, but I cannot remember very many Novembers when the market went down. I’ve only been at this for 47 years, and maybe my memory is failing me, but this is very unusual.

History backs me up on this. November has finished positive 74% of the time over the past 20 years, posting an average return of 2.2% – the second-strongest month on record.

Even though the federal government shutdown officially ended last week, Wall Street’s response was fairly muted. After an initial rally when it was clear the shutdown would end, stocks then traded relatively sideways to slightly lower for the week.

The fact is, the stock market is still recovering from the AI apocalypse from the previous week.

Mean reversion algorithms wreaked havoc on stocks, even those that have announced better-than-expected quarterly results and provided positive guidance. So, many AI-related stocks were pummeled in the first trading week of November.

Now, there was an impressive short-covering rally in AI-related stocks early last week. But the stock market typically likes to “retest” its recent lows – and we saw that play out on Thursday with the NASDAQ falling more than 2%. The retest continued into Friday.

Why Sentiment Is the Problem

The bottom line is that investors are in a really bad mood, even though we have a lot to celebrate.

Wall Street’s mood should improve dramatically as Thanksgiving draws near. After all, the holidays are a happy time of year, and Main Street’s holiday spirit tends to rub off on the stock market. So, I wouldn’t be surprised if stocks rally in the three trading days leading up to Thanksgiving next week.

Additionally, the negative articles about the stock market are becoming even harder to defend in the wake of the strongest earnings in four years. FactSet reports that 92% of S&P 500 companies have released quarterly results so far, with 82% of them topping analysts’ estimates. The S&P 500 has achieved 13.1% average earnings growth, as well as posted a 7% average earnings surprise.

The good news, though, is that given the recent retest, I think many stocks are now great buys. I encourage you not to be distracted or discouraged by the market’s day-to-day gyrations. We should view every dip as a great buying opportunity, as fundamentally superior stocks should rebound strongly in the coming weeks and lead the overall market higher.

This Week’s Ratings Changes

Now, with that said, I know that the stock market’s volatility is probably weighing on your mind right now. And that’s why it’s important to be positioned in the right stocks.

As I always tell my followers, good stocks bounce like fresh tennis balls – and bad stocks drop like rocks.

So, to find which stocks are sporting the best fundamentals backed by strong institutional buying pressure, I took a look at my Stock Grader (subscription required) recommendations for 141 big blue chips (subscription required). Of these 141 stocks…

• Twenty-five stocks were upgraded from Strong (B-rating) to Very Strong (A-rating).
• Twenty-three stocks were upgraded from Neutral (C-rating) to Strong (B-rating).
• Eighteen stocks were upgraded from Weak (D-rating) to Neutral.
• Eight stocks were upgraded from Very Weak (F-rating) to Weak.
• Fourteen stocks were downgraded from Very Strong to Strong.
• Twenty-five stocks were downgraded from Strong to Neutral.
• Twenty stocks were downgraded from Neutral to Weak.
• And eight stocks were downgraded from Weak to Very Weak.

I’ve listed the first 10 stocks rated as Very Strong below, but you can find a more comprehensive list – including all 141 stocks’ Fundamental and Quantitative Grades – here. Chances are that you have at least one of these stocks in your portfolio, so you may want to give this list a skim and adjust accordingly.

How to Prepare for What’s Ahead

As we prepare for the holidays and the year ahead, I want you to get excited about what’s coming – but I also want you to be prepared.

That’s because I think the mainstream media is only telling us part of the story.

See, while I don’t think we’re in an “AI bubble,” I do think that we need to be ready for a period of tremendous upheaval – both in the market and in our society.

That’s because the AI Revolution is already disrupting our world – and it’s only getting started. 

In fact, we’re entering an age I like to call the Economic Singularity.

This is the moment when artificial intelligence becomes the driving force behind our economy. In fact, we’re already seeing this play out – as some economists project that virtually all of our GDP growth this year was driven by the data center buildout.

And in 2026, it’s only going to accelerate.

This shift will be faster and more concentrated than the Industrial Revolution and the Internet combined. I know that may sound scary for some folks. That’s because it is.

But the same technology that’s eliminating jobs is also creating enormous opportunities for investors who act now.

That’s why I created a special briefing – so regular investors can understand the threats and opportunities that are playing out at lightning speed right before our eyes.

Go here to check it out now.

Sincerely,

Louis Navellier

Editor, ÃÛÌÒ´«Ã½ 360

The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

argenx SE Sponsored ADR (ARGX)

The post Quant Ratings Updated on 141 Stocks appeared first on InvestorPlace.

Tesla (TSLA) just confirmed what we’ve suspected for months: the next great computing bottleneck isn’t chips – it’s power.

Last week, the company unveiled a new marketing push for its Megapack batteries, aimed directly at AI data centers battling wild, unpredictable power swings. Tesla claims its systems can absorb up to 90% of AI-induced load volatility, stabilizing sites where energy demand can spike or crash by several megawatts in a heartbeat.

It’s a reminder that as AI training loads push the grid to its limits, batteries are quietly becoming as essential to AI infrastructure as GPUs themselves…

And we’re already seeing that shift begin to play out in real time.

Canary Media recently reported that – instead of waiting on infrastructure upgrades, new gas turbines, or lobbying utility companies for more power – Aligned Data Centers is paying for a new 31-megawatt/62-megawatt-hour battery to power its new facility in the Pacific Northwest. And according to the companies involved, this deal will get Aligned’s data center running ​”years earlier than would be possible with traditional utility upgrades.”

These moves tell us everything we need to know about where we are in the AI infrastructure cycle – and where the next big investment opportunities are hiding. 

AI data centers are running ahead of the grid; and batteries are how they’ll bridge the gap.

With hyperscalers turning to utility-scale batteries to unlock capacity, stabilize voltage, and keep training clusters humming, we’re seeing the clearest signal yet that batteries are becoming core AI infrastructure.

It’s a brilliant hack – and it’s likely to become standard practice for every firm racing to deploy AI capacity.

The AI Battery Boom Is Here

Data centers are quickly becoming the largest power consumers in the world.

That’s why the companies solving AI’s energy bottleneck could see growth that rivals the chip boom itself.

Just as Nvidia became the bottleneck supplier for AI compute, the companies that can build and scale utility-grade batteries are positioning themselves as bottleneck suppliers for AI power.

Think about it this way. Every AI data center needs:

• Graphics Processing Units (GPUs) to run their models
• Power to keep the lights on and the regulators happy

It’s the same dynamic; and it creates the same kind of explosive opportunity.

We see three very interesting ways to play it.

Eos Energy: The Zinc Battery Play for AI Data Centers

Most batteries on the grid today are lithium-ion. But lithium-ion has limits: it’s expensive, it degrades quickly when cycled hard, and it’s not optimized for multi-hour storage.

Enter Eos Energy (EOSE).

Eos builds zinc-based batteries that are specifically designed for longer applications, between four and 10 hours. That’s the sweet spot for data centers looking to buffer grid demand and secure overnight uptime. And unlike lithium-ion, zinc doesn’t require nickel, cobalt, or lithium – minerals increasingly caught up in geopolitical snares.

The company has quietly amassed a multi-billion-dollar project pipeline. And if other data centers go the way of Aligned, the AI Boom could pour gasoline on that fire. 

Think of Eos as the ‘non-lithium bet’ on AI storage. If hyperscalers start diversifying battery chemistry to reduce risk, Eos is perfectly positioned.

Fluence Energy: The Leading AI Data Center Battery Stock

Now, where Eos is the scrappy upstart, Fluence (FLNC) is the established pure-play leader in grid-scale batteries.

A joint venture between AES (AES) and Siemens, Fluence has already deployed over 7 gigawatts of storage across the globe. It sells not just the hardware but the software to orchestrate storage systems, making it a one-stop shop for data centers and utilities.

If you’re a hyperscaler that needs 200 MW of storage integrated into your new AI campus, Fluence is the first number you call.

Investors have started to notice. Shares have surged nearly 370% since May.

But even still, the runway here is massive. Fluence could be to AI batteries what Nvidia was to AI chips: the name brand everyone trusts.

Tesla’s Megapack: The Hidden AI Infrastructure Powerhouse

Everyone knows Tesla (TSLA) for its cars – and now its humanoid robots. But the company has quietly become one of the world’s largest battery companies.

Tesla’s Megapack business has locked in multi-year, multi-billion-dollar contracts, most notably: 

• a 15.3 GWh supply agreement with Intersect Power valued at over $3 billion through 2030
• and a June 2025 order from Clearway Energy for 490 MW/1,356 MWh that industry reports peg at roughly $450 million 

With Tesla cranking out record volumes – 12.5 GWh of Megapacks in Q3 2025 alone and over 31 GWh in 2024 – demand is so strong that new orders are getting pushed well into future calendar years. In other words, Tesla’s battery business isn’t just busy… it’s booked solid for years, as utilities and power producers race to lock in capacity before the grid revolution leaves them behind.

Recent moves suggest Tesla sees where the market is headed. The company is clearly aligning its Megapack business with the surging power demands of AI, positioning itself as the go-to provider for hyperscalers that need flexible, grid-stabilizing storage fast.

That alignment gives Tesla a near-unmatched edge. It already has the factories, supply chains, and track record to deliver multi-megawatt systems at industrial speed. For AI developers facing power constraints, that combination of scale and reliability makes Tesla the obvious partner.

This makes it not just an EV stock but a stealth AI infrastructure play hiding in plain sight.

Investing in the Data Center Power Revolution

Aligned’s battery tactic isn’t a one-off curiosity. It’s a preview of the next wave of the AI trade.

First was GPUs. Then energy. Now? Storage.

Every AI data center built over the next decade will almost certainly come with a giant battery project attached. That’s tens – maybe hundreds – of billions in new demand for grid-scale batteries…

Which means the companies building those batteries could ride the same exponential curve Nvidia has over the last five years.

If you believe AI is the future, you need to believe batteries are the enabler. And you need exposure to the stocks that make it happen.

Bottom line: AI isn’t just a compute story anymore. It’s a power story. And in that power story, batteries are the unsung hero. 

Today’s headline about data centers building giant batteries to get online faster is tomorrow’s trillion-dollar investment theme.

But this shift is also part of something much bigger – a new phase of the AI wealth cycle that’s minting millionaires faster than any tech boom in history.

That’s why I recently traveled to Silicon Valley to unveil the “Hyperscale Revolution,” all about the digital-first companies using AI to scale without factories, inventory, or limits. And it’s why I believe one small, overlooked stock could become the next Amazon… in a completely unexpected sector.

This moment marks the ‘end game of technology’ – when exponential progress turns into exponential profits. If I’m right, the time to act is now.

Watch my latest briefing and see how to position yourself before this AI wave peaks.

The post The Quiet Power Play Wall Street Is Missing in the AI Boom appeared first on InvestorPlace.

Brace yourself. We’re about to have a massive, portfolio-crushing crash.

That’s how it feels to many investors right now.

But in Friday’s Growth Investor Flash Alert, quant legend Louis Navellier urged investors to recognize the opportunity amidst the panic:

I realize there’s a lot of anxiety out there… Everybody’s very nervous.

But we’ve gone from being overbought to now grossly oversold.

So, there are a lot of good buys right now.

Stepping back, here’s Louis’ explanation for how we went from last month’s all-time high to our current gloom-and-doom:

The first shock was on Wednesday, October 22. That’s when the top 300 stocks in the Russell 3000 – 300 stocks, the best performers since August 1 – had a 5.73% correction intraday.

So, that was a mean reversion algorithm. It was violent and it really wrecked the market.

When you have these shocks to the system, you have to have aftershocks. And normally, you retest the lows and then you move on.

Well, [last Thursday], we blew through the lows on the NASDAQ – not on the Dow or the S&P, but on the NASDAQ.

But while that’s intensifying the angst we’re seeing today, Louis reminds his subscribers that good stocks “bounce like fresh tennis balls” and not to be “concerned about these market gyrations.”

Still, the anxiety that many investors feel today raises “the” question of the moment…

As regular Digest readers know, our plan is to track this bull market’s final innings with the “Crazy Map” we introduced earlier this fall. If the market rolls over, we’ll eventually exit within a reasonable window after what we believe is the top, guided by Senior Analyst Brian Hunt’s A-B-C framework (detailed in this Digest).

As a quick reminder, with the A-B-C framework, we’re watching a sequence including:

• A six-month downside breakout (A)
• Trading below a declining 200-day moving average (B)
• A new series of lower highs and lower lows on the way to a new 12-month low (C)

With that context, below is the S&P with its 200-day moving average, beginning in 2023.

As a hint, you’ll find that we’re nowhere close to…

• A six-month downside breakout…
• Or a declining 200-day moving…
• Or a new 12-month low…

But here’s something critical to recognize…

For the S&P 500 to even touch its 200-day moving average, it would require a drawdown of almost 9%. And Brian’s A-B-C signals don’t trigger until we fall below that level.

So, if the recent top-to-bottom ~2.5% dip in the S&P and ~4.5% retreat in the Nasdaq has you rattled, that’s a sign of something important…

You could be measuring your risk with the wrong yardstick.

Many investors subconsciously anchor their emotions to the peak value of their portfolio.

How many times during a market drawdown have you done some quick math, then concluded…

I’m down X% from my high.

But here’s the truth…

Your high-water mark shouldn’t define or influence your market decisions. Your process should.

Following Brian’s A-B-C Framework, our eventual exit will come well after a peak, once the triggers materialize. But this means that being some distance below our all-time high won’t be a failure, it’ll be the expected – and accepted – cost of capturing the bulk of a bull market’s gains.

Now, you don’t have to go that route. If you’re nervous about what could be coming and don’t want to lose 9% (likely more), you can go into full defensive mode today.

But what if you’re wrong?

As the great Peter Lynch once said:

Far more money has been lost by investors preparing for corrections or trying to anticipate corrections than has been lost in the corrections themselves.

A letter from Michael Burry began circulating on the internet last Thursday.

Burry is the investor who famously shorted the housing market during the 2008 crisis. The bet turned into the movie, “The Big Short”, with Steve Carell playing Burry.

For about two years, Burry has been positioned for a major stock market decline. He has repeatedly warned about excessive valuations, speculative excess, and structural risks. And he’s expressed those views through aggressive bearish bets.

But the letter from Burry’s Scion Capital group reveals that he’s closing his fund and returning capital to shareholders.

Why?

Because over the last two years, while Burry has expected dramatic pullbacks, the Nasdaq has returned almost 70%.

From Burry to his investors:

My estimate of value in securities is not now, and has not been for some time, in sync with the markets.

Now, Burry is a brilliant thinker. So, his decision reminds me of a critical reality…

Odds are, you can’t either.

Plenty of incredibly smart investors have been wiped out…or sidelined for years…or been out of the market while a bull market raged…because they believed they could identify the moment the music would stop.

That’s the danger of anchoring to your high-water mark or assuming the top must be close.

The truth is that trying to pre-empt the top or protect your peak portfolio value is often far more costly than accepting that you’ll give up a portion of your gains after the top is in.

The good news is that you can choose how much you’re willing to pay in your quest to ride all the way to the peak – it’s the amount you’re willing to give back on the other side.

Bottom line: If this market is giving you a scare, clearly identify how much you’re willing to pay to reach “the top.” You’ll sleep much better going forward.

We just got Louis’ perspective, which we can boil down to “if you’re holding fundamentally strong stocks, don’t stress – look for buying opportunities.”

Let’s now check in with our technology expert, Luke Lango, editor of Innovation Investor:

[Last week] stocks got absolutely hammered, extending what is now the worst correction on Wall Street since the April crash.

And the culprit, of course, is AI spending fears… again.

We don’t agree with these fears.

Why? Because the ROI on AI is not theoretical anymore – it’s showing up in the data.

The St. Louis Fed just dropped a blockbuster study showing that since ChatGPT launched, every 1% increase in AI-related time savings has corresponded to 2.7% faster productivity growth versus the pre-pandemic trend.

That is a monster number.

Luke walks through some back-of-the-napkin math involving AI, productivity, and GDP, concluding that we could see upwards of 15% GDP growth, resulting in an additional $16.5 trillion in economic output.

With this basis, Luke asks:

So, is $500 billion of hyperscaler AI capex next year “too much”?

No. It’s arguably too little.

The return on investment is staring us in the face.

Want the latest way to play it?

Luke highlights Cisco (CSCO), which dropped a blowout earnings report last week.

According to Luke:

Cisco itself is scrambling to expand supply because it expects AI orders to double in FY26.

For Luke’s official picks in Innovation Investor, click here to learn more about joining him.

If the volatility, bearish headlines, and fear of giving back gains is weighing too heavily on you, remember – you don’t have to “own” this market as a long-term buy-and-hold investor…

You can rent it.

That’s the beauty of short-term, high-conviction trading. You’re not marrying a position. You’re capturing the surge, harvesting the profit, and stepping aside. And few in our industry do that better than veteran trader Jonathan Rose, editor of Advanced Notice.

Here are a few of his recent returns – and hold periods – to make the case for me:

• 209% in 13 days – LYFT
• 275% in 25 days – ETHA
• 700% in 15 days – MP
• 227% in 49 days – U
• 534% in 3 days – MP

These aren’t hypothetical backtests. They’re real trades Jonathan made by identifying the exact moments that institutional “smart money” piles into a stock – the moments he calls Profit Surges.

Last week, at his Profit Surge Event, Jonathan walked viewers through how his system finds these trades, how he manages risk, and how his approach can amplify the very same big-picture trends that Louis, Luke, and Eric Fry recommend.

You can catch the full replay of the event here. But a heads-up – we’re taking it down this evening, so this is last call.

ÃÛÌÒ´«Ã½s can flip from boom to gloom in an instant… market experts can be brilliant – yet wrong in their timing… and market tops only reveal themselves long after the fact.

That’s why we’re not trying to nail the top. We’re trying to remain grounded in what market history suggests is our best course of action – defining a plan, then anchoring our decisions to it.

So, what are you anchored to today? Your peak or your plan?

Have a good evening,

Jeff Remsburg

The post Feeling Rattled? Here’s When to Exit this ÃÛÌÒ´«Ã½ appeared first on InvestorPlace.

Specifically, tech stocks took a tumble mid-week amid ongoing nervousness about the valuations of artificial intelligence stocks and a potential “AI bubble.”

For example, NVIDIA Corporation (NVDA), the leader of the AI Revolution, had one of the worst hits, dropping about 4.5% on the week.

All eyes are watching NVIDIA more closely, as it will serve as the grand finale to earnings season when it announces its earnings after the market closes this Wednesday. I’ll review the earnings and share my thoughts with you this Thursday, so keep an eye on your inbox for that!

I want to assure everyone that the recent correction was technical in nature and had nothing to do with fundamentals. Fortunately, as Thanksgiving approaches, investors tend to focus more on the holidays and their vacation plans, so I expect sentiment to improve.

With that in mind, we had a special guest on Navellier ÃÛÌÒ´«Ã½ Buzz that I’m very excited about: Tammy Marshall, known as the “Fibonacci Princess.” She used her technical expertise to explain when this market correction will end, if gold stocks are still safe to buy and if AI-related stocks are viable again, since they were the biggest victims of the mean reversion algorithms that took place recently. We also talk about a few key companies set to report earnings this week, including Home Depot, Inc. (HD) and Target Corporation (TGT).

Click the image below to watch now.

To see more of my videos, click here to subscribe to my YouTube channel. If you’d like to learn more about Tammy, check out her YouTube channel here.

Plus, the grades in Stock Grader (subscription required) have been updated this week! Click here to plug in your own stocks and see how they’re rated.

Knowing When to Act When Opportunity Strikes

While Tammy and I covered what’s happening now in the market – the volatility, the reversals and what to watch – there’s another layer to all of this that’s just as important…

Knowing how to act when opportunities emerge.

That’s why I recently teamed up with veteran trader Jonathan Rose, who has developed a fast-moving trading strategy that zeroes in on Wall Street’s biggest hidden bets – and how to capitalize on them before the crowd.

We just revealed it during The Profit Surge Event – and if you missed it, you can still catch the full replay here before it’s taken down tonight.

In this special session, he walks you through how to amplify the upside on picks from me, Eric Fry and Luke Lango – sometimes by 500% or more – using his signature trading method.

It’s a rare look at how institutional money moves behind the scenes – and how everyday investors can move with it. You don’t want to miss it.

Click here to watch now while you still can.

Sincerely,

Louis Navellier

Editor, ÃÛÌÒ´«Ã½ 360

The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

NVIDIA Corporation (NVDA)

The post Gold Rebounds, AI Stocks Reset and NVDA Takes Center Stage (w/ Tammy Marshall) appeared first on InvestorPlace.

And now a new catalyst is stepping onto the stage: a major liquidity shift that changes everything for risk assets.

My colleague Jonathan Rose is joining us today to break down what this policy pivot really means… why it matters far more than the headlines suggest… and how traders can position themselves to capture the opportunities it’s already creating.

Last week, I joined Jonathan for a special event where we shared some of our biggest ideas and saw firsthand how his trading system tracks Wall Street’s hidden moves. It was an incredible session — and if you missed it, today is the last day you can access the replay.

So, be sure to click here to watch our free, special event.

And now, here Jonathan is on the Fed’s latest pivot…

For months, the headlines have been trying to take this market down.

First it was surging bond yields and “higher for longer” interest rates. Toss in weak earnings from some of the big names, geopolitical flare-ups, and talk of a looming recession.

And just last week came the fears around AI froth — overstretched valuations, overbought tech stocks, traders too euphoric. If you just looked at the mainstream media, you’d expect this market to be on its knees.

But every time we’ve seen a pullback this year — whether it’s been a 3% four-day slide, or April’s “Tariff Tantrum” 20% correction — this market has come roaring back to set new highs.

The market is sending a message—and it’s not subtle: The foundation is stronger than the headlines want us to believe.

And almost all of this happened before the Federal Reserve made one of its most important announcements in years.

On October 29, the Fed confirmed what some of us had been suspecting for months: Quantitative tightening is ending.

As of December 1, the Fed will stop shrinking its balance sheet. They’ll begin reinvesting maturing Treasuries and mortgage-backed securities, reversing the slow liquidity (i.e., cash) drain that’s been weighing on the system since 2022.

That means billions of dollars will start flowing back into U.S. stocks as the Fed shifts from draining money out of the system to putting it back in. More liquidity typically gives investors more confidence — and that can lift stock prices across the board.

This isn’t some minor policy shift. This is a full-blown liquidity pivot that removes what may have been the single biggest headwind markets have faced since this tightening cycle began.

For the past three years, the market has been climbing with a weight on its back. Now that weight is coming off.

And with rate cuts likely still ahead, these conditions are setting the stage for the next leg higher in growth assets like tech and crypto. If the market has been this resilient without a tailwind, just imagine what happens when it finally has one.

What the Fed’s Money Pullback Really Did

Let’s step back.

In 2022, the Fed started allowing billions of dollars in Treasury and mortgage bonds to mature without replacement every month. That’s quantitative tightening (QT), and it’s the opposite of the massive money-printing – quantitative easing (QE) – we saw during the pandemic.

QT works by slowly shrinking the Fed’s balance sheet, draining liquidity from the financial system. It makes credit tighter, makes borrowing more expensivefor businesses and consumers, and reduces the flow of cash into stocks and other assets. While it’s less dramatic than hiking interest rates, it adds pressure behind the scenes, tightening funding conditions and weighing on valuations.

For the past three years, QT has been a steady drag on financial markets. Not enough to break the bull market entirely, but just enough to keep higher-risk assets on a leash. Roughly $95 billion per month was being pulled out of the system; that’s about $1.4 trillion since quantitative tightening began.

Now that ends. On December 1, those maturing securities will be reinvested instead of allowed to roll off. That means the Fed will no longer be vacuuming reserves out of the system. They’ll be putting money back in.

No, it’s not quantitative easing… yet. But it’s close enough to matter. Because whether you call it “neutral” or “accommodative,” the end result is the same: more dollars sloshing through the pipes.

When liquidity expands, higher-risk investments rise. It’s that simple.

Then vs. Now

The last time the Fed paused QT was 2019 — right before markets ripped higher into one of the most powerful bull runs we’ve seen. The setup now is eerily similar: slowing growth headlines, cautious Fed rhetoric, and a market bracing for cuts that “aren’t guaranteed.”

Sound familiar?

Back then, QT stopped… and within months, tech stocks  and even more speculative corners of the market were on fire.

This pivot feels even bigger.

Back in 2019, the Fed’s balance sheet had never been this large, and rates weren’t this high.

Today, we’re coming off both the steepest tightening cycle and the most aggressive balance-sheet runoff in modern history.

Reversing that pressure — even slightly — will send shockwaves through short-term lending markets like the repo desks that keep Wall Street’s plumbing running. And it heightens the appetite for equity and credit risk.

That’s why I’m saying it loud and clear:

Bullish. Bullish. Bullish.

Why Tech Leads the Charge

Let’s take a look at the Nasdaq-100…

Tech has been unstoppable. For five years, that relative-strength line of the Invesco QQQ Trust (QQQ), which tracks the Nasdaq-100, versus the S&P 500 has gone almost straight up — and as of October, it hit a five-year high.

This isn’t just about “AI hype.” It’s about structural leadership.

When liquidity floods the system, the most innovative, asset-light, cash-flow-rich names tend to outperform. Big Tech has become the ultimate liquidity sink — where global capital flows when real yields fall and cash needs a home.

So if the Fed is about to loosen financial conditions, you can bet tech will be the first to react.

AI, quantum computing, uranium, advanced materials — these are all long-duration, high-growth sectors that live and die by the cost of capital. Lower rates and a fatter Fed balance sheet make those future cash flows more valuable.

That’s why I keep saying: This is the moment to stay long innovation.

How This Shapes My ÃÛÌÒ´«Ã½ Outlook

When the Fed adds liquidity, correlations break down. The strong get stronger.

Small-caps might bounce, but the real leadership remains in bigger tech — specifically AI, data-center infrastructure, and the semiconductor complex. That’s why the QQQ continues to crush the Dow Jones Industrial Average and the Russell 2000 small-cap index.

But liquidity doesn’t mean we won’t see volatility. We’ll see plenty of volatility.

However, the kind of trading I do thrives off volatility.

That’s where professional traders make their living — by combining volatility with the leverage of option trades and tracking where big institutional money is moving to help turn small market moves into outsized returns.

When I say I’m bullish, that doesn’t mean “buy and forget.” It means I’m positioning my members to capture market moves while keeping our risk low.

That’s the difference between gambling and trading.

If you haven’t seen The Profit Surge Event yet, you’re missing the most important conversation I’ve ever had about trading. In that session, I reveal the simple tweak that’s helped everyday traders turn small, focused bets into extraordinary gains. 

This exact approach is what allowed my members to collect returns of 108% on Comstock Resources Inc. (CRK) and 99% on Grindr Inc. (GRND) just last week.

You’ll also hear from Louis Navellier, Eric Fry, and Luke Lango as we discuss how this strategy can amplify their top stock ideas by 500% or more. 

It’s the blueprint my community is using right now to trade smarter, faster, and more creatively. You can catch the entire presentation – and get access to a report detailing my highest-conviction trading setups right now – by watching the full replay here.

Bottom Line

The Fed is ending its three-year cash drain. QT is over. Rates are headed lower. That combination is pure rocket fuel for higher-risk assets — especially tech.

There will be noise. There will be corrections. But the overall direction of this liquidity-fueled shift is up.

Trade small. Trade smart. Stay creative.

Because this is where the next great bull leg begins.

The creative trader wins,

Jonathan Rose,

Senior Analyst, InvestorPlace

The post The Fed Just Handed Traders a Gift — Don’t Miss This Setup appeared first on InvestorPlace.

This Week’s Ratings Changes:

Upgraded: Strong to Very Strong

Downgraded: Very Strong to Strong

Upgraded: Neutral to Strong

Downgraded: Strong to Neutral

Upgraded: Weak to Neutral

Downgraded: Neutral to Weak

Upgraded: Very Weak to Weak

Downgraded: Weak to Very Weak

To stay on top of my latest stock ratings, plug your holdings into Stock Grader, my proprietary stock screening tool. But, you must be a subscriber to one of my premium services.

To learn more about my premium service, Growth Investor, and get my latest picks, go here. Or, if you are a member of one of my premium services, you can go here to get started.

Sincerely,

Louis Navellier

Editor, ÃÛÌÒ´«Ã½ 360

The post Eli Lilly Upgraded, Chewy Downgraded: Updated Rankings on Top Blue-Chip Stocks appeared first on InvestorPlace.

Quantum computing just hit escape velocity. 

In a single month, IBM (IBM), Harvard, and a little-known Chinese lab each cleared hurdles that once seemed decades away – proof that the race for quantum dominance is no longer theoretical.

IBM unveiled “Loon,” a chip that, for the first time, embeds advanced quantum error correction directly into hardware: a leap that could make practical quantum systems viable before decade’s end. 

Harvard researchers followed with a fault-tolerant architecture that suppresses errors below the critical threshold, effectively proving large-scale, stable quantum machines are possible. 

And in Beijing, photonics startup CHIPX claimed the world’s first industrial-grade optical quantum processor – “1,000 times faster than Nvidia’s GPUs” at certain AI tasks – already powering aerospace and finance applications.

Together, these breakthroughs confirm what investors like me have suspected: quantum computing’s commercial era has begun.

After decades of theory and lab-bound prototypes, the technology is leaping into the real world. And for investors, that means the clock just started ticking on the next trillion-dollar technology wave…

Why Quantum Computing Outclasses Classical Machines

To really understand why quantum matters, it helps to step back and look at how it rewrites the rules of computation itself.

Traditional computers run on bits – either 0 or 1. That binary framework powered the digital revolution; but it has its limits. Some problems are simply too complex to brute-force with more chips and faster processors.

By contrast, quantum computers run on what are called qubits. Thanks to superpositioning, a qubit can be both 0 and 1 at the same time. And when qubits are entangled, their states link across space, allowing computers to explore a vast number of solutions in parallel. In other words, instead of testing outcomes one by one, a quantum computer can evaluate millions simultaneously. Problems that would take classical machines years – perhaps forever – become solvable in minutes.

That’s why quantum represents a foundational shift in computing architecture – the kind that comes once every half century. 

Mainframes in the 1960s, PCs in the 1980s, cloud computing in the 2000s… each minted fortunes. And the quantum era could be even bigger.

2025: The Year Quantum Computing Goes Commercial

The evidence that this leap is no longer theoretical is overwhelming. Let’s look at some of the most important real-world quantum deployments from just this year:

• Ford (F) Otosan: In March, Ford’s Turkish division deployed a hybrid quantum application on its Transit line. Sequencing 1,000 vehicles, a task that normally took 30 minutes, now takes less than five with a D-Wave system, directly boosting factory throughput.
• IonQ × AstraZeneca (AZN) × Amazon Web Services × NVIDIA (NVDA): In June, this collaboration simulated a notoriously complex chemical reaction – the Suzuki-Miyaura coupling – more than 20 times faster than classical pipelines, shrinking discovery timelines from months to days.
• Q-CTRL × Network Rail: Also in June, Q-CTRL optimized train scheduling at London Bridge, solving problems six times larger than any prior run. For a hub moving hundreds of thousands of commuters, efficiency gains translate into millions in value.
• NTT DOCOMO × D-Wave: In August, Japan’s largest carrier used quantum annealing to cut paging congestion by ~15% – a meaningful lift in customer experience and network capacity.
• HSBC (HSBC) × IBM: More recently, HSBC reported a quantum-enabled bond trading model that improved order-fill predictions by 34% versus classical methods – an edge in the most competitive financial market on Earth.

These are not lab demos. They’re business applications, delivering measurable ROI.

Why This Matters

These breakthroughs are important for three reasons:

McKinsey’s Quantum Technology Monitor estimates that quantum technology across sectors (chemicals, life sciences, finance, mobility) could generate trillions of dollars by 2035. But with this year’s wave of breakthroughs, that may even prove a conservative figure…

Quantum Meets AI: The Rise of Q-AI

Now, here’s where things get really exciting.

Today’s artificial intelligence systems, like GPTs and autonomous agents, are limited by classical computing. Training a frontier model requires months, thousands of GPUs, and billions of dollars in electricity. Scaling AI further will hit hard walls of cost and physics.

Quantum computing changes that playing field.

When you combine quantum’s exponential problem-solving with AI’s ability to learn, adapt, and generate, you get what I call Q-AI, or Quantum AI. Early roadmaps suggest it could:

• Train massive AI models in days instead of months.
• Explore model architectures that are currently impossible.
• Solve combinatorial problems in real time.
• Accelerate breakthroughs in drug discovery, logistics, finance, and climate modeling.

If you think of today’s AI as a jet engine running on kerosene, it’s powerful… but limited. Q-AI represents that same jet engine but fueled by nuclear fusion. 

The leap in performance will be staggering.

How to Invest In the Commercial Quantum Era

Every major technological revolution has minted fortunes for those who got in early. 

Mainframes created IBM. PCs created Microsoft. Smartphones created Apple. Cloud created Amazon. AI created Nvidia.

Now quantum will create the next generation of titans.

Already, companies like IonQ, D-Wave, Rigetti, and Quantinuum are racing ahead. Tech giants like IBM, Google, Microsoft (MSFT), and Amazon (AMZN) are pouring billions into quantum. And commercial customers – from industrials and pharma to finance, telecom, and beyond – are all lining up.

Ford is sequencing cars with it. HSBC is trading bonds with it. AstraZeneca is accelerating drug discovery. DOCOMO is managing networks. Railroads are scheduling trains.

Quantum computing is a new layer of the technology stack that every industry will eventually need. That means decades of growth and adoption ahead.

And as quantum converges with AI into Q-AI, we’re staring at the birth of an entirely new paradigm in computing – one that could reshape every sector of the global economy.

The question is no longer if quantum will matter. The question is: will you be invested before the rest of the world catches on?

Of course, if you believe the quantum era will create fortunes, wait until you see what’s happening in AI… 

I just returned from Silicon Valley with a bold new thesis that I call the ‘Hyperscale Revolution’: a once-in-a-generation megatrend where digital-first companies scale at speeds the market’s never seen. 

This is the ‘end game of technology’ – a point where AI and exponential progress collide to mint millionaires faster than any cycle in history. And in a new briefing, I’m revealing why one small company could become the next Amazon… but in a completely unexpected sector.

Click here to watch that presentation and position yourself before this AI wave peaks.

P.S. While I focus on long-term megatrends like AI and quantum, Wall Street veteran Jonathan Rose zeroes in on the short-term ‘surge point’ inside those same trends – the bursts of momentum that can turn weeks into windfalls. It’s how he’s captured trades like +959% on Albemarle (ALB), +534% on MP Materials (MP), and +233% on Rigetti (RGTI)… often in under a month.

Now, with the Fed cutting rates and volatility rising, we have joined forces for The Profit Surge Event, unveiling a strategy built to capture this new trading window – possibly the most explosive of the decade.

Access closes at midnight tonight. Don’t miss your chance to see how our combined approach could turn today’s volatility into your next major profit run.

The post Quantum’s Tipping Point: Inside the Commercial Era of Computing appeared first on InvestorPlace.

Right now, the same materials that power your EV motor and drone propeller are about to power the next phase of the AI economy – the physical side. The side that moves robots, drives autonomous cars, and builds the machines that make intelligence tangible.

That’s why this week’s earlier selloff in rare earth stocks may be one of the most misunderstood moves in the market. While traders see “peace” between Washington and Beijing as a reason to sell, the long-term reality is far more powerful: America can’t run its AI revolution on Chinese magnets forever.

Today, InvestorPlace Senior Analyst Luke Lango is joining us to explore why this short-term truce has opened a once-in-a-decade buying opportunity… and how one U.S. company could emerge as the national champion at the heart of the next industrial supercycle.

Take it away…

Every once in a while, markets serve up a paradox so big it makes your head spin.

That’s what’s happening right now with rare earth stocks — the most essential raw-material plays in the entire AI revolution.

Once the hottest trade on Wall Street, rare earth stocks have been crushed in the last few weeks because Washington and Beijing called a short-term truce on rare-earth exports — and investors panicked, assuming that meant “crisis averted, problem solved.”

But here’s the paradox: that very “peace deal” is what makes this the best buying opportunity of 2025 in one of the world’s most strategically important sectors.

Because the reality is simple: the U.S. can’t run its AI boom on Chinese magnets forever. And this short-term calm doesn’t change the long-term mission — it just lets you buy the future of America’s AI supply chain at a discount.

What Rare Earths Actually Are

Let’s start with the basics.

“Rare earths” refers to 17 metallic elements — names like neodymium, praseodymium, dysprosium, terbium, and samarium — that have special magnetic and conductive properties.

They’re the metals that make modern technology move.

Rare-earth magnets are 20X stronger than ordinary iron magnets. That’s what lets your electric car accelerate quietly, your drone hover steadily, and your robot arm lift heavy objects precisely.

If you think AI is software, think again. The AI economy runs on physical intelligence — robots, autonomous cars, smart factories, AI-powered defense systems — all powered by rare-earth magnets.

These metals are literally what convert digital intelligence into physical motion.
Without them, AI doesn’t move.

Why They’re Critical to the AI Boom

Every layer of the AI supply chain relies on rare earths:

• Data centers use them in high-efficiency cooling fans, power converters, and precision servos.
• Humanoid robots need hundreds of neodymium-iron-boron (NdFeB) motors to replicate human movement.
• Autonomous vehicles rely on rare-earth magnets in electric drive units and lidar sensors.
• Energy systems — from wind turbines to grid batteries — depend on the same metals for high-torque, low-loss motion.

That means rare earths are the muscle fibers of the AI revolution — as essential as GPUs are to AI computation.

The GPU is the brain. The magnet is the muscle.

And you can’t have one without the other.

How They Became the New Geopolitical Flashpoint

For years, China has held a near-monopoly on rare earths. It controls more than 70% of global mining and over 90% of refining and magnet manufacturing.

That was fine when we were making iPhones and wind turbines. It’s not fine when we’re trying to build a new generation of AI-powered robots, vehicles, and defense systems.

In 2024, China reminded everyone who’s boss. It tightened export permits, citing “national security.” Then, after tensions over Taiwan, it briefly paused shipments of heavy rare earths — the exact materials the U.S. needs for high-temperature magnets used in EVs and defense.

Washington panicked. The Department of Defense declared rare earths a national security priority. And in 2025, the White House rolled out what insiders are calling the AI Materials Independence Initiative — a multi-billion-dollar push to fund mining, refining, and magnet plants on U.S. soil.

The message was clear: if AI is the new arms race, rare earths are the ammunition.

The White House Steps In

In a remarkable shift, the U.S. government has gone from talking about supply-chain independence to actually buying it.

The White House, through the Pentagon, DOE, and DPA, has:
• Taken direct equity stakes in U.S. rare-earth producers, including MP Materials (MP).
• Provided grants, loans, and offtake guarantees for magnet factories in Texas and Oklahoma.
• Signed supply agreements with allies like Japan and Australia to coordinate non-China rare-earth development.
• Written “Buy American” magnet mandates into defense procurement programs.

For decades, America ceded the rare-earth supply chain to China. Now it’s building one of its own — at full speed, with Washington’s checkbook wide open.

In other words, the U.S. isn’t just investing in data centers and chips. It’s investing in the atoms that make AI possible.

Why Rare Earth Stocks Just Crashed

Now, here’s where it gets interesting.

In late October, the U.S. and China reached a temporary trade détente. Beijing agreed to suspend certain export restrictions on rare-earth magnets for a year. Wall Street immediately decided that meant the rare-earth “crisis” was over — and rare-earth stocks tanked.

MP Materials, Lynas Rare Earths (LYSDY), and other Western suppliers all fell 20–40% in weeks.

But that logic is completely backward.

China didn’t surrender its dominance. It just pressed pause — because even Beijing knows that using rare earths as a weapon would backfire economically. The structural imbalance hasn’t changed one bit.

The U.S. still imports nearly all of its magnets from China. AI demand is still exploding. And the White House is still pouring capital into building domestic capacity.

That makes this pullback the perfect setup: short-term fear, long-term inevitability.

Why This Is a Rare Opportunity

Think back to the energy shocks of the 1970s. Every dip in oil stocks was a buying opportunity because the world still ran on oil.

Now substitute rare earths for oil — and AI for cars.

This is the AI industrial revolution. And the world runs on rare-earth magnets.

China’s monopoly makes U.S. supply independence a matter of national survival. That means funding will keep flowing. Demand will keep rising. Policy support will keep growing.

Yet after this diplomatic “truce,” you can buy the only scaled U.S. rare-earth company — MP Materials — at a 30–40% discount from where it was a few months ago.

The Case for MP Materials (MP) Stock

If there’s one company to own in this space, it’s MP Materials stock.

• It operates the Mountain Pass Mine in California — the only integrated rare-earth mine and processing facility in North America.
• It’s building out two major U.S. magnet factories — one already online in Texas, another (“Project 10X”) on the way with capacity for 10,000 tons of NdFeB magnets a year.
• It has long-term supply deals with General Motors (GM) and Apple (AAPL).
• The U.S. Department of Defense recently took a $400 million preferred stake in MP and guaranteed a 10-year minimum price for its key oxide (NdPr).

No other company in the Western Hemisphere has that kind of policy protection or vertical integration. MP is essentially the national champion of U.S. rare earths — the materials equivalent of what Nvidia (NVDA) is for chips.

And the scale potential here is enormous.

MP’s current market cap is around $10 billion. That prices in a single magnet plant and today’s spot prices. But let’s imagine the next decade unfolds as the White House intends — a fully domestic, China-independent rare-earth ecosystem built around MP.

Here’s what that world looks like:

Do the math: $2B EBITDA × 20 = $40 billion enterprise value.

Assume little net debt, and you’ve got a $40B market cap, or roughly 4× today’s price — potentially $220+ per share by the early 2030s.

That’s not speculative; it’s mechanical. It’s what happens if MP becomes the backbone of U.S. rare-earth independence — which, at this point, feels more like national policy than corporate ambition.

Why It’s Still Early

Most investors still think of MP as “a mining stock.” They’re wrong.

MP isn’t a miner. It’s a strategic infrastructure company. It’s building the foundation for an entire industrial sector the U.S. cannot function without — not just for EVs, but for every piece of physical AI hardware on the horizon.

That’s why the Department of Defense, Department of Energy, and the White House are all writing checks.
That’s why Apple, GM, and defense primes are signing offtakes.
And that’s why the short-term selloff looks like a gift.

The AI Boom isn’t slowing down. It’s shifting from the cloud to the world — from software to machines, from language models to humanoid robots, from chips to motors.

And those motors are made of magnets. Magnets made from rare earths. Rare earths controlled by one company America can trust — MP stock.

The Takeaway

The crowd just got spooked by geopolitics — again. The headlines scream “U.S.–China deal!” But beneath the noise, the real story hasn’t changed. America still needs its own AI supply chain, and the AI economy still runs on rare-earth magnets — the irreplaceable link between digital intelligence and physical motion.

This so-called “peace deal” didn’t end the rare-earth story. It amplified it. Washington isn’t stepping back; it’s stepping in — transforming from regulator to venture capitalist, pouring billions into the materials, energy, and manufacturing base that will secure U.S. tech sovereignty for decades to come.

In the short term, markets are pricing fear. In the long term, they’re funding AI supply chain independence — one magnet, one motor, one policy at a time.

That makes the pullback in MP Materials (MP) one of the smartest and simplest opportunities in the entire AI ecosystem. Because while Wall Street obsesses over GPUs, the real frontier lies deeper in the stack … where America is quietly rebuilding the industrial muscle that makes AI move.

The smartest investors aren’t waiting for the next headline, though; they’re positioning for the next surge.

That’s why I recently teamed up with trading pro Jonathan Rose for The Profit Surge Event, which aired this past Monday.

While I focus on long-term megatrends like the $2 trillion AI infrastructure buildout, Jonathan zeroes in on the short-term “surge points” that occur inside those same trends — the moments when momentum and innovation collide. It’s how he’s spotted trades like +959% on Albemarle (ALB), +534% on MP, and +233% on Rigetti (RGTI) — all riding the AI wave.

Together, we revealed how to combine long-term conviction with short-term precision — the formula for turning breakthrough technologies like Nvidia’s (NVDA) AI empire into fivefold profit potential.

This is our blueprint for trading the biggest wealth event of our lifetimes. 

Click here to watch the replay and see how to capture the next AI-driven profit opportunity.

Regards,

Luke Lango

Editor, Hypergrowth Investing

The post The Future Is Made of Magnets appeared first on InvestorPlace.

Holiday shopping and corporate “use it or lose it” budgets mean that retailers and enterprise software firms alike see their highest sales during this period. It’s also a time for managers to “window dress” corporate results to meet year-end goals. 

Since the 1950s, markets have ended December higher 75% of the time. 

ÃÛÌÒ´«Ã½s are also entering this year-end with wind in their sails (and sales). Despite this week’s selloff, the S&P 500 has still risen 15% this year on strong corporate earnings. History tells us that strong earnings momentum typically carries into future months. 

However, the excitement could trigger a nasty hangover for 2026. 

Over the past two White House administrations, we’ve seen valuations get crushed in Year 2 after the excitement of a new president wears off. That’s when the economic realities of executive agendas begin to take effect, and markets lose their glow. Below is a graph of the S&P 500’s cyclically adjusted P/E ratio (CAPE) from the past two presidential terms: 

That pullback in valuations dragged the market down in the past two midterm years, despite earnings rising 6% in each: 

In fact, if you examine data dating back to 1928, it turns out that stocks in Year 2 of a presidential term have returned just 3.3% on average, compared to 9.7% return from other years. Data from U.S. Bank finds that this 3.3% figure turns negative if you start counting November-to-November results from the 1960s onward.  

The hangover from America’s election cycle is quite real. 

I should note that there are other reasons to be cautious about markets in 2026. 

Narrow Growth. U.S. growth is becoming increasingly concentrated among a small number of AI firms. Louis Navellier notes that investment in data centers and related AI technologies accounted for 92% of U.S. GDP growth in the first half of 2025. This is starving other capital-intensive sectors of cash; real estate, healthcare, energy, and financials have seen their 2026 earnings estimates get slashed by 10% or more over the past two months, according to FactSet.  

Consumers. Consumer confidence is hitting new lows. In October, the University of Michigan survey of consumer sentiment hit its lowest reading on record. PwC’s holiday outlook for 2025 calls for an 11% decline in average gift spending, driven by a 23% drop in Gen Z spending and “trading down” across the board.  

Layoffs. Perhaps most worryingly, we’re beginning to see another 2022-style “year of efficiency” round of layoffs, where large corporations cut headcounts to save costs. On October 28, Amazon.com Inc. (AMZN) announced that it would cut 14,000 corporate jobs (not just frontline workers) to save between 3% and 5% in overhead costs. Verizon Communications Inc. (VZ) announced a 15,000-person cut this week, which would eliminate 15% of its workforce. 

These are not the kind of moves you see in a booming market. 

Fortunately, “smart money” buyers still see value in certain corners of the market. Last week, I introduced three firms that have seen strong insider buying; the value-based trio has risen by a percentage in the past week (despite a drop in the S&P 500) and should continue to move higher as investors seek safe havens.  

This week, I’ll leave you with two more that should do the same. 

However, before I do that, there’s something even more important I need to highlight: 

Investors with neutral market exposure have done even better. And you can too. 

The ÃÛÌÒ´«Ã½-Neutral Trader 

Over the past three weeks, our trading expert, Jonathan Rose, has closed out several impressive winners, including trades on: 

• Viasat Inc. (VSAT). +158%  
• Bitmine Immersion Technologies Inc (BNMR). +73% 
• Qorvo Inc (QRVO). +283% 

These gains were possible because Jonathan’s approach doesn’t rely on markets rising or falling. Instead, his strategy takes a neutral stance on markets and profits from volatility instead. 

Jonathan does this by using a system that identifies periods when large institutional investors inadvertently “tip their hand.” In calm markets, billion-dollar block trades are easier to mask. However, when volatility increases, these trades become more apparent in the data. It’s also when big players start making mistakes in their haste to move large sums of money. 

By analyzing these tells, Jonathan can spot when major buy or sell orders are being queued up, allowing him and his readers to take action before these moves fully play out. If a million-dollar order can push a mid-cap stock up by $1 to $2… imagine the impact of a billion-dollar order hitting the tape. 

This trading strategy will become even more important heading into 2026, as rising uncertainty and tighter consumer conditions increase volatility and expand the opportunity set for market-neutral strategies like Jonathan’s. 

To explain this all, Jonathan teamed up with Louis Navellier, Eric Fry, and Luke Lango last week for a special Profit Surge Event. In this free presentation, the four explained how Jonathan’s system works in both good times and bad by detecting buying and selling pressures by large players. 

But that’s not all. Jonathan also showed how applying a simple tweak can multiply the payoff by 500% or more. 

If you missed it, don’t worry. You can still catch a replay here to see how Jonathan and our other Senior Analysts view the current market environment – and show you how to sharpen your strategy for the final stretch of 2025. 

Until then, let’s get back to those two more stocks that should hold up even if investors start paying less for every dollar of earnings in 2026. 

Two More Stocks to Buy for a Volatile 2026 

The first pick this week is Bloomin’ Brands Inc. (BLMN), the owner of Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill, and Fleming’s Prime Steakhouse. Last week, the company saw a massive insider purchase by its chief financial officer of 150,000 shares for $6.38 per share. A director also added 1,500 shares to their retirement account. 

These mark the first insider purchases since Bloomin’ CEO Mike Spanos acquired 118,000 shares in March 2025, after “Liberation Day” tariffs sent BLMN below $10 for the first time since the 2020 Covid-19 pandemic. (Spanos was sitting on 20%-plus gains by July.) 

Today’s buys are being made at an even more compelling valuation. Shares are trading below 6X forward earnings (compared to their long-term average of 12X) and 2X price-to-cashflow (less than half of their 5.4X average). Bloomin’ is still a profitable company, even if earnings are somewhat diminished from their post-Covid peak. 

In addition, the company’s turnaround strategy is starting to show results. On November 6, management announced that comparable store sales growth had turned positive at all four brands for the first time since fist quarter 2023. This turnaround strategy involves simplifying menus, running ad campaigns, and pursuing a “barbell” strategy that offers low-priced options in addition to premium items.  

Outback’s Aussie 3-Course Meals, for example, now start at just $14.99, making it competitive with many fast-food chains. 

Now, Bloomin’ is obviously coming from a relatively low starting point. Diners have soured on midrange restaurants this year, and even Brinker International Inc. (EAT), the owner of high-growth chain Chili’s, has seen its shares stagnate. (Chili’s saw massive success pursuing a barbell strategy last year.) 

Nevertheless, Bloomin’s low valuations give plenty of room for things to go wrong. And if its CFO is correct, we could see shares rise 100% in 2026 as markets pivot back toward low-priced value stocks. 

The second firm this week with notable insider buying is Mosaic Co. (MOS), one of the largest U.S.-based fertilizer companies. 

As Eric noted in late 2022 in a Fry’s Investment Report update (subscription required), the fertilizer market was upended that year by Russia’s invasion of Ukraine. Prices initially surged on panic buying, and then collapsed as supplies began to normalize. This presented investors with an unusual array of options in commodity-related picks. 

Now, opportunity is knocking once again. Shares of commodity-related companies have declined on fears of a new U.S.-China trade war, and Mosaic’s stock has now fallen by a third since July. 

The selloff makes little sense. According to data from the Bureau of Labor Statistics, producer prices have actually marched higher since mid-2023, a positive sign for Mosaic’s future profits. Potash, the largest contributor to Mosaic’s profits, has seen prices rise from below $300 per metric ton in January to $352 today. 

Some smart money buyers might be catching on. Mosaic’s quantitative “follow-the-money” score, according to Louis Navellier’s Stock Grader, has also risen from a rock-bottom “F” to a more reasonable “C.” Then on November 13, a director made the first “informed buy” by a Mosaic insider in more than three years.Most importantly, Mosaic presents a compelling value play in an industry that’s relatively devoid of them. Potash is an essential ingredient in farming, and record crop yields in the U.S. and Brazil mean that farmers will need to replenish their soil for the 2026 planting season.  

If potash prices stay in the mid-$300 range, MOS is worth roughly $35, a 40% upside. Even if the S&P 500 price-to-earnings ratio begins to fall, Mosaic’s attractive 9X multiple gives it plenty of room for error. 

Getting Ready for a Rough 2026 

By any measure, last week should have been a great one for stock markets. 

• The U.S. government reopened… 
• The Trump administration cut tariffs to reduce food prices… 
• Alternative data suggested U.S. inflation remained muted in October… 

Yet, all three major U.S. stock indexes saw a terrible selloff this week after… well… not much. When valuations are so high, it only takes a tiny price drop to trigger a landslide of panic selling by institutional investors. 

That’s what we’re seeing now. Smart money investors are selling, while retail traders are holding out for a recovery. (Popular meme stocks like Opendoor Technologies Inc. [OPEN] have not faced as much of a selloff.) 

To navigate this market, I encourage you to watch our replay of Jonathan’s Profit Surge Event, where he and our three analysts go deep on how to trade this increasingly volatile market. The Santa Claus rally might still happen… but markets could be due for a nasty eggnog hangover in 2026. 

But don’t wait long. The deadline for watching this replay is Monday night. 

Until next week, 

Tom Yeung, CFA 

ÃÛÌÒ´«Ã½ Analyst, InvestorPlace 

Thomas Yeung is a market analyst and portfolio manager of the Omnia Portfolio, the highest-tier subscription at InvestorPlace. He is the former editor of Tom Yeung’s Profit & Protection, a free e-letter about investing to profit in good times and protecting gains during the bad.

The post 2 Stocks to Protect Yourself From a 2026 ÃÛÌÒ´«Ã½ Crash appeared first on InvestorPlace.

We unveiled a powerful breakthrough that tracks Wall Street’s hidden bets… and showed how it could supercharge three of our favorite stocks by 500% or more. For investors, this could mark the beginning of the most profitable stock market window in decades.

Now, I’m making the full replay of this special event – along with three of his high-conviction stock picks – available to watch free for a limited time.

Just click here to view The Profit Surge Event right now.

It started with a blip on my options scanner — a surge of strange trades in a stock everyone had written off for dead.

It led to one of the boldest calls of my career.

And within months, that blip turned into a 10,000% eruption that made Wall Street tremble.

In 2021, at the height of the so-called retail apocalypse, it looked like the end for the videogame store chain GameStop.

GME traded around $4.78 a share to begin 2021. Considering it had traded as low as $1 in July 2020, no one was really paying attention.

It looked like dead money.

But I saw something different…

What most people didn’t know was that the “smart money” was getting into position. Institutional traders were piling into bearish bets.

And I was one of the first to spot it…

For nearly three decades, I traded options for the pros – whether on the floor of the Chicago Board Options Exchange or as the partner of a well-known bond prop firm.

It was my job to leverage the sort of intel institutional traders use to place huge, market-making bets.

So GameStop’s massive trading volume grabbed my attention.

It’s what I like to call “Unusual Options Activity”– when the smart money tips their hand before anyone else knows what’s coming.

Right after I spotted that tell, I noticed something else…

Another player was quietly piling into $5 GameStop calls. For folks new to options, calls are simply bullish contracts options traders take on a stock.

And that position told me the price was about to spike… hard.

So I recommended the September 1^st-dated calls at the $5 strike to my followers on YouTube in August 2020 (this was years before I joined InvestorPlace).

Keep in mind this was well before near-daily headlines started coming out about the stock.

I knew I had spotted a massive trade in the options market before most people knew anything about it. It was powerful intel that I simply had to share with my viewers.

And once I did, the domino effect was incredible…

The Pile-On No One Saw Coming

The day traders who gathered in a Reddit group called “WallStreetBets” soon realized the same thing I did…

They figured if enough people got together and bought GameStop, they could “squeeze” the hedge funds out of their short positions. That would force a massive run-up in the share price. Even Elon Musk encouraged his followers to buy more shares.

And then the unbelievable happened…

From August to January 2021, GameStop surged from $4.50 to $483.

That’s a ridiculous 10,633% surge.

And my followers were perfectly positioned to benefit. Beyond that first video recommendation, I kept ringing the bell on this stock.

One of my YouTube followers, CDean30, put it perfectly…

You’re the real one who predicted this, Jonathan. I’ll admit it. I watched your video and have been playing it since AUGUST when you made the other video.

That initial trade in GME? It netted my viewers more than 202% within just a couple days of posting that first video.

For the so-called smart money? GME’s surge was a painful lesson…

Melvin Capital, a hedge fund that took a massive short position in GameStop, lost 30% of its funds in less than a month. Two other famous hedge funds, Citadel and Point72, had to step up with $2.75 billion in capital to save Melvin from collapsing.

That wasn’t the end of the story, though.

I spotted another huge – and profitable – move in GME in May 2022 that landed my viewers gains of more than 100% in just under a month.

Now, I’m not telling you all this to brag. There’s a lesson here that comes down to one approach every trader needs to know…

How the Smart Money Trades

I’ll put it in simple terms: Great trading is all about leveraging great intel.

I’m not talking about reading chart patterns or following the latest CNBC headlines. That’s all surface-level.

I’m talking about the kind of insight that only institutional traders, hedge funds, and investment banks have.

GameStop’s massive run was a perfect example. And leveraging that type of data? That’s been my job for 30-plus years.

My experience speaks for itself…

In 1997, I got my start as a floor trader at the Chicago Mercantile Exchange. I traded futures on the Nasdaq and S&P 500 during the dot-com boom and bust.

By 2003, I’d become director of trading at a leading proprietary trading firm. I left the floor to join a small group of traders focused on volatility in the bond market.

I was making markets for major players like Goldman Sachs – all while managing millions in capital from my own stable of traders.

But ultimately, I felt as if my best work was still to come.

I found myself thinking, “Why can’t regular folks get in on these smart money buy signals?”

And that brings us right back to the tools traders use to spot these big moves in the first place.

I saw GameStop’s run because, 10 years ago, I hit on one really big idea.

I developed a software tool around a key market indicator. It’s a tool that alerts us to the biggest trades changing hands in the options market ahead of the pack.

I call it the Unusual Options Activity (UOA) Scanner. And it has seriously changed the game for my members.

Our gains in the first half of 2025 were simply phenomenal…

• In May, we rode a massive smart-money bet on multinational mining group Sibanye Stillwater Ltd. (SBSW) to a 141% gain in just 39 days…
• In March, we exited our position in Alignment Healthcare Inc. (ALHC) after less than a month for a near-200% gain.

That major hot streak happened while the markets were melting down earlier this year. Tariff drama and geopolitical conflict had been rocking the markets for months.

But we stuck to our guns. And we leaned on the fundamentals to get us through one of the most turbulent markets in history.

Then we turned around and bested those gains with a series of all-timer trades…

In the last six months alone, we’ve notched all-timers in dozens of stocks. These include…

• 209% on Lyft Inc. (LYFT)…
• Over 700% on MP Materials Corp. (MP)…
• 959% on Albemarle Corp. (ALB)…
• And a whole wave of triple-digit gainers across my most-watched sectors like AI, drones, and nuclear stocks.

Just looking back at this past week, we managed two triple-digit gainers in record time.

My viewers closed out bullish options calls in Comstock Resources Inc. (CRK) for a 108% return in just 15 days.

That big win joined another huge profit in Grindr Inc. (GRND). We managed that stock to 100% gains within just a few weeks.

All those triple-digit winners are just the tip of the iceberg.

You see, these trades aren’t just once-in-a-market-cycle opportunities. The markets are handing us even more opportunities like these now.

And if you know how to track real market flow – not the headlines, but the “unusual” footprints that institutional players leave behind – it’s possible to spot these opportunities even when chaos strikes.

Going All-In on Unusual Activity

Most traders wait for CNBC to tell them any given sector is rallying. By then, the move is already over.

But when you learn to read “Unusual Options Activity”? When you understand what the expected move is signaling? You’re trading with the same information institutions are using.

And you’re seeing where the big money is getting in position before the crowd figures it all out. I want everyone who’s eager to listen to have that same knowledge. The kind that gets you a beat on the biggest opportunities before they hit most investors’ radars.

I want to give you the exact tools you need to discover those massive opportunities taking shape in the options market that fly under most traders’ radars.

I just went live with my “Trade of the Decade” at The Profit Surge Event.

Not only that, but during that presentation, I showed viewers exactly how to systematically track picks from my InvestorPlace colleagues – Louis Navellier, Eric Fry, and Luke Lango – and pair them with a simple tweak that can multiply the payoff on great stock ideas.

This is the same approach we’ve used all year to stay ahead of massive shifts in precious metals, commodities, tech stocks, and much more. While everyone else was reacting to headlines, we were positioning where the real money is flowing.

For The Profit Surge Event, Louis, Eric, and Luke share their highest-conviction plays. These are the names they’re watching most closely right now.

Plus, I show you how to get ahold of my Trade of the Decade… plus three more trades that I believe could be home runs based on my market forecast and Unusual Options Activity.

You can watch a full replay of our special event  for a limited time.

Remember, the creative trader wins.

Regards,

Jonathan Rose

Founder, Masters in Trading

The post How One Trade on a “Dead Stock” Made Me a Legend appeared first on InvestorPlace.

But first, I wanted to give Jonathan the floor to share more of his perspective on what’s driving this market right now. Here he is on the Fed’s latest pivot…

For months, the headlines have been trying to take this market down.

First it was surging bond yields and “higher for longer” interest rates. Toss in weak earnings from some of the big names, geopolitical flare-ups, and talk of a looming recession. 

And just last week came the fears around AI froth – overstretched valuations, overbought tech stocks, traders too euphoric. If you just looked at the mainstream media, you’d expect this market to be on its knees.

But every time we’ve seen a pullback this year – whether it’s been a 3% four-day slide, or April’s “Tariff Tantrum” 20% correction – this market has come roaring back to set new highs.

The market is sending a message – and it’s not subtle: The foundation is stronger than the headlines want us to believe.

And almost all of this happened before the Federal Reserve made one of its most important announcements in years.

On October 29, the Fed confirmed what some of us had been suspecting for months: Quantitative tightening is ending.

As of December 1, the Fed will stop shrinking its balance sheet. They’ll begin reinvesting maturing Treasuries and mortgage-backed securities, reversing the slow liquidity (i.e., cash) drain that’s been weighing on the system since 2022.

That means billions of dollars will start flowing back into U.S. stocks as the Fed shifts from draining money out of the system to putting it back in. More liquidity typically gives investors more confidence – and that can lift stock prices across the board.

This isn’t some minor policy shift. This is a full-blown liquidity pivot that removes what may have been the single biggest headwind markets have faced since this tightening cycle began.

For the past three years, the market has been climbing with a weight on its back. Now that weight is coming off. 

And with rate cuts likely still ahead, these conditions are setting the stage for the next leg higher in growth assets like tech and crypto. If the market has been this resilient without a tailwind, just imagine what happens when it finally has one.

How QT Drained Liquidity – and Kept ÃÛÌÒ´«Ã½s on a Leash

Let’s step back. 

In 2022, the Fed started allowing billions of dollars in Treasury and mortgage bonds to mature without replacement every month. That’s quantitative tightening (QT), and it’s the opposite of the massive money-printing – quantitative easing (QE) – we saw during the pandemic.

QT works by slowly shrinking the Fed’s balance sheet, draining liquidity from the financial system. It makes credit tighter, makes borrowing more expensive for businesses and consumers, and reduces the flow of cash into stocks and other assets. While it’s less dramatic than hiking interest rates, it adds pressure behind the scenes, tightening funding conditions and weighing on valuations.

For the past three years, QT has been a steady drag on financial markets. Not enough to break the bull market entirely, but just enough to keep higher-risk assets on a leash. Roughly $95 billion per month was being pulled out of the system; that’s about $1.4 trillion since quantitative tightening began.

Now that ends. On December 1, those maturing securities will be reinvested instead of allowed to roll off. That means the Fed will no longer be vacuuming reserves out of the system. They’ll be putting money back in.

No, it’s not quantitative easing… yet. But it’s close enough to matter. Because whether you call it “neutral” or “accommodative,” the end result is the same: more dollars sloshing through the pipes.

When liquidity expands, higher-risk investments rise. It’s that simple.

A Familiar Setup, But With Higher Stakes for Growth Stocks

The last time the Fed paused QT was 2019 – right before markets ripped higher into one of the most powerful bull runs we’ve seen. The setup now is eerily similar: slowing growth headlines, cautious Fed rhetoric, and a market bracing for cuts that “aren’t guaranteed.”

Sound familiar?

Back then, QT stopped… and within months, tech stocks  and even more speculative corners of the market were on fire.

This pivot feels even bigger.

Back in 2019, the Fed’s balance sheet had never been this large, and rates weren’t this high. 

Today, we’re coming off both the steepest tightening cycle and the most aggressive balance-sheet runoff in modern history. 

Reversing that pressure – even slightly – will send shockwaves through short-term lending markets like the repo desks that keep Wall Street’s plumbing running. And it heightens the appetite for equity and credit risk.

That’s why I’m saying it loud and clear:

Bullish. Bullish. Bullish.

Why Fed Liquidity Supercharges Tech and AI Stocks

Let’s take a look at the Nasdaq-100…

Tech has been unstoppable. For five years, that relative-strength line of the Invesco QQQ Trust (QQQ), which tracks the Nasdaq-100, versus the S&P 500 has gone almost straight up – and as of October, it hit a five-year high.

This isn’t just about “AI hype.” It’s about structural leadership.

When liquidity floods the system, the most innovative, asset-light, cash-flow-rich names tend to outperform. Big Tech has become the ultimate liquidity sink – where global capital flows when real yields fall and cash needs a home.

So, if the Fed is about to loosen financial conditions, you can bet tech will be the first to react.

AI, quantum computing, uranium, advanced materials – these are all long-duration, high-growth sectors that live and die by the cost of capital. Lower rates and a fatter Fed balance sheet make those future cash flows more valuable.

That’s why I keep saying: This is the moment to stay long innovation.

Positioning for the Liquidity Wave Hitting ÃÛÌÒ´«Ã½s

When the Fed adds liquidity, correlations break down. The strong get stronger.

Small-caps might bounce, but the real leadership remains in bigger tech – specifically AI, data-center infrastructure, and the semiconductor complex. That’s why the QQQ continues to crush the Dow Jones Industrial Average and the Russell 2000 small-cap index.

But liquidity doesn’t mean we won’t see volatility. We’ll see plenty of volatility.

However, the kind of trading I do thrives off volatility.

That’s where professional traders make their living – by combining volatility with the leverage of option trades and tracking where big institutional money is moving to help turn small market moves into outsized returns.

When I say I’m bullish, that doesn’t mean “buy and forget.” It means I’m positioning my members to capture market moves while keeping our risk low.

That’s the difference between gambling and trading.

If you haven’t seen The Profit Surge Event yet, you’re missing the most important conversation I’ve ever had about trading. In that session, I reveal the simple tweak that’s helped everyday traders turn small, focused bets into extraordinary gains. 

This exact approach is what allowed my members to collect returns of 108% on Comstock Resources Inc. (CRK) and 99% on Grindr Inc. (GRND) just last week.

You’ll also hear from Louis Navellier, Eric Fry, and Luke Lango as we discuss how this strategy can amplify their top stock ideas by 500% or more. 

It’s the blueprint my community is using right now to trade smarter, faster, and more creatively. You can catch the entire presentation – and get access to a report detailing my highest-conviction trading setups right now – by watching the full replay here… but only until midnight tomorrow.

Bottom Line

The Fed is ending its three-year cash drain. QT is over. Rates are headed lower. That combination is pure rocket fuel for higher-risk assets – especially tech.

There will be noise. There will be corrections. But the overall direction of this liquidity-fueled shift is up.

Trade small. Trade smart. Stay creative.

Because this is where the next great bull leg begins.

The post The ÃÛÌÒ´«Ã½’s Biggest Headwind Is About to Disappear appeared first on InvestorPlace.

Made with yellow bricks, paved with good intentions, or diverging in a wood, “roads” are always more than just a structured path in a given direction.

They often embody transformation and progression. (Take it from The Wizard of Oz’s Dorothy or poet Robert Frost.)

That’s why I embarked on the Road to AGI over a year ago and have been closely watching Artificial General Intelligence’s (AGI) forward steps since. AGI represents a fundamental shift in what machines can do, transforming how we go about our daily lives.

And this week, AGI’s new “road” came from the gaming world.  

The Google DeepMind AI research lab unveiled SIMA 2, its latest agent, on Wednesday. This new AI agent is capable of learning and playing multiple video games without being explicitly programmed for them.

DeepMind says this development is a training ground for real-world AI agents, and a stepping stone toward general-purpose intelligence. Simply put, it’s a sign that we’re almost at the engineering stage on the Road to AGI.

“This is a significant step in the direction of Artificial General Intelligence (AGI), with important implications for the future of robotics and AI-embodiment in general,” DeepMind stated.

But DeepMind isn’t the only “player,” so to speak, in the AGI game. In a recent Smart Money, I detailed how Microsoft Corp.’s (MSFT) new partnership with OpenAI gives the Magnificent Seven company the freedom for to pursue AGI – something it was previously restricted from doing.

Since then, Microsoft AI CEO Mustafa Suleyman announced that the company is forming the Microsoft AI Superintelligence Team.

So, today, I’d like to discuss this new superintelligence team and Microsoft’s unique approach to AGI.

I’ll also share more AGI updates and, importantly, show you how to get on this road and win big.

Let’s dive in…

Microsoft’s Step Into AGI

Microsoft is the latest to join Anthropic, Alphabet Inc. (GOOGL), Meta Platforms Inc. (META), and others in creating an AI division to discover and guide AGI.

However, Microsoft’s new team say they are taking a “humanist” approach. They say they’re avoiding the frenzied “race to AGI” we find in most AI labs. But the company is still full steam ahead on becoming the “world’s best place to research and build AI.”

As AI continues to accelerate, Microsoft AI sees its new superintelligence efforts as “part of a wider and deeply human endeavor to improve our lives and future prospects.” In short, the company is aiming to design systems that work with us, not against us.

Yet, regardless of how Microsoft words it, the company is creating an AI superintelligence team without guardrails preventing it from pursuing AGI – a dramatic departure from what it was previously allowed to do.

Following OpenAI’s recent restructuring – and now the formation of the MAI Superintelligence Team – Microsoft will now shift from building smaller AI models and will no longer spend as many resources on OpenAI.

Instead, it will focus on building “world-class, frontier-grade research capability in-house,” Suleyman said.

Inevitably, this means the company will be spending more money on AI research than before, piling onto the billions of dollars that tech companies are already spending.

The news of Microsoft’s superintelligence team comes four months after Metaannounced its own $15 billion superintelligence team of experts.

However, things at Meta are rocky. On Wednesday, its chief AI scientist, Yann LeCun, said he is exiting the company in order to form his own AI startup. While this is a loss for Meta, it’s another brick, yellow or otherwise, laid on the Road to AGI.

And it’s a road that’s being created quickly.

In an interview with The Wall Street Journal Leadership Institute on Tuesday, Verizon Communications Inc. (VZ) CEO Dan Schulman called AI’s pace “unprecedented.”

“Unless you’re really in the AI community, it’s hard to imagine how fast this is happening,” he said.

Schulman predicts that AGI will arrive in just two to four years.

Here’s what these developments mean for us investors…

3 Ways to Invest on the Road to AGI

With each new prediction – and new players like Microsoft joining the game – AGI is getting even closer.

Investors who are unprepared will miss the transformative opportunities that AGI will bring. But those who position themselves correctly could witness the greatest moneymaking opportunity in human history.

The keyword is “correctly.”

That’s why I’ve developed a three-step process for finding companies that will survive and thrive on the Road to AGI…

• Invest “in” AI: Buying shares of companies that are providing key parts of the infrastructure that will accelerate AI technology toward AGI. Think chip companies.
• Invest “alongside” AI: Getting in on the companies primed to rise in tandem with AGI, like those that provide the physical infrastructure of AGI facilities.
• Invest in “stealth” AI: Investing in non-tech companies that will adopt and apply AI to reap huge gains in efficiency, productivity, and profits.

I put everything you need to know in my The Road to AGI: Final Warning broadcast.

I’ve also put together three reports, where I have one recommendation ready to go for investing in AGI… another for investing alongside AGI… and a third for investing in stealth AGI.

You can learn how to access those reports and the names of these companies in my special presentation.

As the AGI race heats up, your investment decisions are more important than ever – and I want you to be on the winning team.

Click here for more details.

Regards,

Eric Fry

P.S. While my stock recommendations are built to be held in your portfolio for the entire walk along the Road to AGI, my colleague Jonathan Rosefocuses on the short-term surges that will happen along that journey. Earlier this week, I joined Jonathan — along with Louis Navellier and Luke Lango — for a special Profit Surge presentation where he showed how tracking unusual Wall Street activity can amplify great stock ideas by 500% or more. Our publisher plans to take down this presentation Monday night. But you can still catch the replay till then.

The post Microsoft Just Made Its AGI Play — Now It’s Your Turn appeared first on InvestorPlace.

Most people won’t circle today, November 15, on their calendars.

It’s not a holiday. And unless you’re a fan of Bundt cake or spicy guacamole – both of which apparently have “national days” this week – it might seem like just another date.

But for investors, November 15 marks the quiet birth of something that reshaped the entire world and still powers your portfolio today.

On that day in 1971, Intel introduced the first microprocessor, the 4004, a sliver of silicon that turned computers from room-sized machines into pocket-sized powerhouses.

In the simplest terms, the microprocessor enabled the consolidation of a computer’s central processing unit onto a single chip.

The evolution of the microprocessor sparked a technological revolution. Computers became smaller and more powerful simultaneously.

That meant that computers could be small enough to sell to everyday consumers. The evolution of microprocessors led to their integration into all sorts of devices you use every day – including cars and household appliances – and fundamentally changed how technology is integrated into our lives.

From there, the evolution only accelerated and ushered in the era of exponential progress we live in today.

The 1980s PC boom turned Intel and Microsoft into Wall Street juggernauts. Every new chip meant faster computers, new software, and rising stock prices. The companies that controlled the silicon and the systems around it captured decades of compounding growth.

By the 1990s, Moore’s Law – which predicts that computing power will double every two years – had become the ultimate business plan. Intel and AMD battled for speed. Taiwan Semiconductor (TSMC) quietly became the industry’s backbone, manufacturing chips for the world.

Meanwhile, the rise of the internet created a new generation of winners built on top of that silicon foundation.

Then came mobile.

A British design firm called ARM Holdings designed the chips that powered nearly every smartphone and fueled the rise of Apple, which eventually built its own ARM-based chips and reshaped personal computing again.

Now we’re in the AI era. The VanEck Semiconductor ETF (SMH) holds all the major players in the semiconductor space. Below is a chart showing its growth since the debut of ChatGPT three years ago.

NVIDIA’s graphics chips, once made for gaming, have become the engines of AI and cloud computing.

Each wave of innovation has crowned new kings and handed big gains to investors who spotted the change early.

However, the market is no longer the same

Wall Street doesn’t wait years for these shifts to play out.

In the AI era, leadership changes in weeks, not decades. By the time a company hits CNBC, it’s already too late.

The biggest money on Wall Street, the insiders, algorithms and institutions, have already made their moves and driven up the price.

That’s why I’ve been paying such close attention to Jonathan Rose, the former Chicago Board Options Exchange market maker, and his Advanced Notice service.

Jonathan has tools and experience beyond anything Main Street uses. He watches where institutional traders – the hedge funds, the quant desks, the proprietary trading firms – are quietly positioning their money before the news breaks and before the moves begin.

Using his Advanced Notice system, Jonathan tracks unusual options activity in every sector driving today’s exponential growth: AI, semiconductors, cloud computing, energy infrastructure, robotics, and more.

He uses real-time signals of where billions of dollars in smart money is flowing… often before the stock charts reflect what’s coming.

In fact, the same system that once helped him trade against the fastest, smartest and most competitive institutions on earth is now helping his subscribers multiply the gains of the trends they’re already investing in.

And the proof is in the results…

Jonathan’s Advanced Notice system has already produced 49 winning trades with an average gain of 267%, including wins as high as 2,785% in just 26 days.

He isn’t just following the AI boom – he’s showing subscribers how to trade it like the pros, capturing the bursts of momentum that can dramatically amplify your returns on the stocks you already own… and uncovering new opportunities before the crowd sees them.

Last week, Jonathan held a briefing, The Profit Surge Event…

Joined by Louis Navellier, Eric Fry, and Luke Lango, Jonathan revealed the signals his system is currently flashing – including several trades tied directly to the next wave of AI and semiconductor innovation.

In the event, he broke down how he reads options flow, how he trades around these tech megatrends, and how you can use the very same tools Wall Street uses to spot the next leaders of this generational tech shift.

If you’ve ever wondered how to stay ahead in a market that’s moving faster than any in history…

If you want to be positioned before the next NVIDIA, ARM, or TSMC moment hits the mainstream…

You’ll want to watch The Profit Surge Event.

Click here to watch a replay of The Profit Surge Event and see his newest profit signals before the next phase of the AI boom takes hold.

Enjoy your weekend,

Luis Hernandez

Editor in Chief, InvestorPlace

The post The Chip that Changed History and Your Portfolio appeared first on InvestorPlace.